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þ
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the fiscal year ended December 30, 2018
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the transition period from to
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Massachusetts
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04-2052042
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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940 Winter Street, Waltham, Massachusetts
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02451
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(Address of Principal Executive Offices)
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(Zip Code)
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Title of Each Class
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Name of Each Exchange on Which Registered
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Common Stock, $1 Par Value
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New York Stock Exchange
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Large accelerated filer
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ý
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Accelerated filer
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o
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Non-accelerated filer
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o
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Smaller reporting company
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o
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Emerging growth company
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o
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Page
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PART I
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Item 1.
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Item 1A.
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Item 1B.
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Item 2.
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Item 3.
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Item 4.
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PART II
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Item 5.
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Item 6.
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Item 7.
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Item 7A.
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Item 8.
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Item 9.
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Item 9A.
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Item 9B.
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PART III
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Item 10.
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Item 11.
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Item 12.
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Item 13.
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Item 14.
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PART IV
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Item 15.
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Item 16.
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Item 1.
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Business
|
•
|
Achieving significant growth in both of our core business segments, Discovery & Analytical Solutions and Diagnostics, through strategic acquisitions and licensing;
|
•
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Accelerating innovation through both internal research and development and third-party collaborations and alliances;
|
•
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Strengthening our position within key markets, by expanding our global product and service offerings and maintaining superior product quality;
|
•
|
Utilizing our share repurchase programs to help drive shareholder value; and
|
•
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Attracting, retaining and developing talented and engaged employees.
|
•
|
Radiometric detection solutions, including over 1,100 radiochemicals and the Tri-carb
®
and Quantulus
™
GCT families of liquid scintillation analyzers, Wizard
2®
Gamma counters and MicroBeta
2®
plate based LSA, which are used for beta, gamma and luminescence counting in microplate and vial formats utilized in research, environmental and drug discovery applications.
|
•
|
The Opera Phenix
®
high content screening system, which is used for sensitive and high speed phenotypic drug screening of complex cellular models.
|
•
|
The Operetta
®
CLS
™
high content analysis system, which enables scientists to reveal fine sub-cellular details from everyday assays as well as more complex studies, for example using live cells, 3D and stem cells.
|
•
|
The EnSight
®
multimode plate reader benchtop system, offering well plate imaging alongside labeled detection technologies for target-based and phenotypic assays.
|
•
|
The EnVision
®
multimode plate reader, designed for high-throughput screening laboratories, including those using AlphaScreen
®
, AlphaLISA
®
and/or AlphaPlex
®
technologies.
|
•
|
A wide range of homogeneous biochemical and cell based assay reagents, including LANCE
®
Ultra
™
and Alpha
™
technology assay platforms used for the detection of drug discovery targets such as G-protein coupled receptors (“GPCR”), kinases, biomarkers and the modification of epigenetic enzymes.
|
•
|
A broad portfolio of recombinant GPCR and ion channel cell lines, including over 300 products and 120 ready-to-use frozen cell lines for a wide range of disease areas.
|
•
|
AlphaScreen
®
, AlphaLISA
®
and AlphaPlex
®
research assays, including over 500 no-wash biomarker detection kits for both biotherapeutics and small molecule drug discovery and development in a variety of therapeutic areas including cancer, inflammation, metabolic disorders, neurodegeneration and virology.
|
•
|
TSA
TM
Plus biotin kits, which can increase sensitivity of histochemistry and cytochemistry as much as 10 to 20 times.
|
•
|
In vivo imaging technologies and reagents for preclinical research, including the IVIS
®
Spectrum
™
series for 2D and 3D optical imaging, the FMT
®
series for 3D optical tomography and the IVIS
®
Lumina
™
series for 2D imaging, along with a suite of bioluminescent and fluorescent imaging agents, cell lines and dyes. These technologies are designed to provide non-invasive longitudinal monitoring of disease progression, cell trafficking and gene expression patterns in living animals and are complemented by a broad portfolio of fluorescent and bioluminescent in vivo imaging reagents that can be useful for identifying, characterizing and quantifying a range of disease biomarkers and therapeutic efficacy in living animal models.
|
•
|
The G8 PET/CT preclinical imaging system, delivering PET imaging with an intuitive user interface and efficient workflows, ensuring subject monitoring throughout preparation and imaging.
|
•
|
The
Quantum
TM
GX2 system, which enables in vivo imaging of multiple species across multiple disease areas by delivering industry leading high resolution imaging. Low dose scanning allows subjects to be imaged over time to evaluate disease progression while minimizing the harmful effects of radiation that could impact the biology of the animal.
With the Quantum
TM
GX2 system, data from the IVIS
®
and FMT
®
imaging platforms can be seamlessly co-registered with microCT to deliver more information on the disease state.
|
•
|
OneSource
®
laboratory services, a comprehensive portfolio of multivendor instrument management, QA/QC, lab relocation and regulatory compliance services. OneSource
®
programs are tailored to the specific needs and goals of individual customers and offer a series of informatics-based consulting, planning and management offerings to assist in laboratory productivity and the optimization of complex Information Technology platforms.
|
•
|
OneSource
®
Dashboard, a TIBCO
®
Spotfire
®
technology driven interactive graphical platform, providing visibility to a customer’s global asset population, service event and downtime distribution, as well as key performance indicators to assist in asset operation.
|
•
|
OneSource
®
Insights as a Service
TM
, which leverages comprehensive OneSource® analytics and industry data to develop and deliver customer-need driven recommendations to optimize, integrate and accelerate lab operations.
|
•
|
PerkinElmer Signals Medical Review
TM
software, empowering medical monitors to detect safety signals faster and reduce overall time to submission by combining innovative medical review workflow with advanced analytics.
|
•
|
PerkinElmer Signals Lead Discovery
TM
software, which enables researchers to quickly gain new insights into chemical and biomolecular research data, featuring guided search and analysis workflows and dynamic data visualizations for on-the-fly exploration.
|
•
|
PerkinElmer Signals
TM
Notebook, a scientific research data management solution, allowing researchers to record research data and experiments in digital notebooks, drag & drop, store, organize, share, find and filter data easily.
|
•
|
PerkinElmer Signals
TM
Translational data management, aggregation and analysis platform, which offers out-of-the-box support for the complete precision medicine workflow from data acquisition to biomarker discovery and validation.
|
•
|
The Clarus® series of gas chromatographs, gas chromatographs/mass spectrometers and the TurboMatrix™ family of sample-handling equipment, which are used to identify and quantify compounds in the environmental, forensics, food and beverage, hydrocarbon processing/biofuels, materials testing, pharmaceutical and semiconductor industries.
|
•
|
The Flexar™ ultra-high performance liquid chromatography (UHPLC) and Flexar advanced liquid chromatography systems, which provide high throughput and resolution chromatographic separations.
|
•
|
The QSight® Triple Quad LC/MS/MS, a flow-based mass spectrometry system that provides high sensitivity and enables high levels of efficiency and productivity to meet both standard and regulatory requirements.
|
•
|
The Torion® T-9 portable GC/MS, a fast person-portable GC/MS system, enabling rapid detection and actionable results to potentially hazardous and emergency environmental conditions.
|
•
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Our atomic spectroscopy family of instruments, including the PinAAcle
®
family of atomic absorption spectrometers, the Avio
®
family of inductively coupled plasma (“ICP”) optical emission spectrometers and the
|
•
|
Our infrared spectroscopy (IR) family of instruments, the Spectrum Two™ IR & NIR spectrometers, which are compact and portable and used for high-speed infrared analysis for unknown substance identification, material qualification or concentration determination in fuel and lubricant analysis, polymer analysis and pharmaceutical and environmental applications. This includes the Frontier™ IR and NIR spectrometers designed to provide high sensitivity and flexibility to address a range of sample types. Spotlight™ IR systems are designed for scientists whose samples demand higher sensitivity and simpler analysis and workflows.
|
•
|
The LAMBDA™ UV/Vis, a series of spectrophotometers that provide sampling flexibility to enable measurement of a wide range of sample types, including liquids, powders and solid materials, both in regulated industries as well as QC/QA and research applications.
|
•
|
The 2400 Series II CHNS/O Elemental Analyzer, one of the leading organic elemental analyzers. It is ideal for the rapid determination of carbon, hydrogen, nitrogen, sulfur, and oxygen content in organic and other types of materials.
|
•
|
Our thermal analysis family, including our Differential Scanning Calorimetry (DSC) series that offers exclusive HyperDSC
™
capability for unparalleled sensitivity and new insights into material processes, our Thermogravimetric (TGA) and Simultaneous Thermal Analysis (STA) instruments, which can be coupled to Fourier Transform Infrared (FT-IR), Mass Spectrometry (MS), or Gas Chromatography/Mass Spectrometry (GC/MS) to provide greater analysis power and knowledge.
|
•
|
Perten's Falling Number
®
and Glutomatic
®
instruments, which determine the bread baking quality of wheat and flour, and Perten's DA NIR bench and in process analyzer determine constituent content for use across the food segment from meat to animal feed.
|
•
|
The Delta™ range of milk quality analyzers, which help ensure the quality of dairy products and are used at Central Milk Testing labs as well as dairy processing facilities around the world.
|
•
|
The Bioo Scientific® test kits for detection of toxins, veterinary drug residues and contaminants, which enable rapid and easy testing at different steps in the food value chain.
|
•
|
A range of new AlphaLISA®, Alpha
SureFire® Ultra
and LANCE® reagents and assay kits across key research and therapeutic areas, including cell signaling, inflammation, oncology, and biotherapeutics.
|
•
|
ChemDraw
®
18 chemical structure drawing and visualization application, which is now available on the cloud.
|
•
|
Lead Discovery Premium software, which allows scientists to import, filter by, analyze and interpret chemical structures and biosequences alongside other related data in a highly visual and interactive environment for faster insights and better decisions.
|
•
|
OneSource® Asset Genius™ Monitoring Solution, part of the Asset Genius family, which offers a 360
o
view of PC-driven laboratory instruments regardless of the manufacturer, correlating instrument usage, age and service data, allowing customers to visually pinpoint under-performing, ideally-performing and over-burdened assets, and to make informed decisions.
|
•
|
The FL 6500
TM
and FL 8500
TM
fluorescence spectrophotometers, which address the challenges of bioscience, industrial, chemical, environmental, pharmaceutical, agricultural and academic application. They are designed to improve lab productivity and ensure standard compliance regulations are met. The FL 6500
TM
provides a high-energy pulsed Xenon light source that preserves sample integrity and the FL 8500
TM
provides a high-sensitivity source for testing diluted or small samples.
|
•
|
The QSight
®
400 series is a robust, powerful ready-to-implement triple quad LC/MS/MS system providing higher sensitivity and throughput that regulated food, cannabis and environmental testing labs need to meet their most stringent requirements.
|
•
|
The DELFIA
®
Xpress screening platform, a complete solution for prenatal and maternal health screening, which includes a fast continuous loading system. It is supported by kits for first, second and third trimester analyses for prenatal screening and clinically validated LifeCycle
™
software.
|
•
|
The NeoBase
™
non-derivatized MS/MS AAAC kit, which is used to support detection of metabolic disorders in newborns through tandem mass spectrometry. The kit analyzes newborn dry blood spot samples for measurement of amino acids and other metabolic analytes for specific diseases.
|
•
|
The GSP
®
Neonatal hTSH, T4 17á-OHP, GALT IRT, BTD, PKU, Total Galactose, CK-MM and G6PD kits, used for screening congenital neonatal conditions from a drop of blood.
|
•
|
The Specimen Gate
®
informatics data management solution, designed specifically for newborn screening laboratories.
|
•
|
ViaCord
®
umbilical cord blood banking services for the banking of stem cells harvested from umbilical cord blood and cord tissue, for potential therapeutic application in transplant and regenerative medicine.
|
•
|
An expanded portfolio of molecular-based infectious disease screening technologies for blood bank and clinical laboratory settings in China. The tools include a qualitative 3-in-1 assay for the detection of hepatitis B, hepatitis C and HIV, as well as assays for other communicable diseases.
|
•
|
The EnLite
™
Neonatal TREC
™
System, a screening test for Severe Combined Immunodeficiency, consisting of EnLite
™
Neonatal TREC
™
reagent kits, the Victor EnLite
™
instrument and EnLite
™
workstation software.
|
•
|
NeoLSD
TM
MSMS kit, the first commercial IVD kit for screening of Pompe, MPS-I, Fabry, Gaucher, Niemann-Pick A/B and Krabbe disorders from a single DBS sample.
|
•
|
QSight
®
Triple Quad MSMS instrument, which is used for newborn screening.
|
•
|
TRF based Anti HBs/HCV/TP kits for infectious disease testing.
|
•
|
The chemagic™ Prime™ instrument, a fully automated, LIMS-compatible solution for primary sample transfer, DNA and RNA isolation, optional normalization, and the setup of PCR and NGS applications.
|
•
|
Immune fluorescence testing (IFT), enzyme-linked immunosorbent assay (ELISA), chemiluminescence-based immunotesting, immunoblots, molecular microarrays, PCR, liquid handlers and software solutions.
|
•
|
Autoimmune testing covering rheumatology, hepatology, gastroenterology, endocrinology, neurology, nephrology, dermatology and infertility.
|
•
|
Infectious disease testing covering bacteria, viruses and parasites.
|
•
|
IFT, ELISA and EUROLINE
TM
assays for veterinary medical diagnostics.
|
•
|
Automated liquid handling platforms (JANUS
®
, Sciclone
®
and Zephyr
®
) that offer a choice of robotic solutions in genomics, biotherapeutics, high throughput screening and high content analysis to assist life science research from bench to clinic.
|
•
|
JANUS
®
BioTx
™
workstation for automated small scale purification, offering column, tip and plate based chromatography on a single platform.
|
•
|
The LabChip GXII
®
Touch
TM
platform, which provides a means of characterizing multiple protein product attributes for research labs through QC.
|
•
|
The explorer
®
automated workstation, which allows integration of multiple laboratory instrumentation using a centralized robotic interface, allowing high throughput and turnkey-application focused solutions.
|
•
|
Vanadis
®
NIPT, a breakthrough cfDNA technology for use in genetic and biochemistry laboratories for screening common trisomies in pregnant population.
|
•
|
Allergy testing covering allergen-specifi immunoglobin e (IgE) measuring the level of different IgE antibodies in blood using ELISA and EUROLINE
TM
assays.
|
•
|
PG-Seq
TM
and DOPlify
®
kits for preimplantation genetic testing.
|
•
|
New NextFLEX
®
library prep kits and barcode for next generation sequencing.
|
•
|
ProteinEXact
TM
assay for protein quantitation and sizing applications.
|
Item 1A.
|
Risk Factors
|
•
|
accurately anticipate customer needs,
|
•
|
innovate and develop new reliable technologies and applications,
|
•
|
receive regulatory approvals in a timely manner,
|
•
|
successfully commercialize new technologies in a timely manner,
|
•
|
price our products competitively, and manufacture and deliver our products in sufficient volumes and on time, and
|
•
|
differentiate our offerings from our competitors’ offerings.
|
•
|
competition among buyers and licensees,
|
•
|
the high valuations of businesses and technologies,
|
•
|
the need for regulatory and other approval, and
|
•
|
our inability to raise capital to fund these acquisitions.
|
•
|
demand for and market acceptance of our products,
|
•
|
competitive pressures resulting in lower selling prices,
|
•
|
changes in the level of economic activity in regions in which we do business,
|
•
|
changes in general economic conditions or government funding,
|
•
|
settlements of income tax audits,
|
•
|
expenses incurred in connection with claims related to environmental conditions at locations where we conduct or formerly conducted operations,
|
•
|
contract termination and litigation costs,
|
•
|
differing tax laws and changes in those laws, or changes in the countries in which we are subject to taxation,
|
•
|
changes in our effective tax rate,
|
•
|
changes in industries, such as pharmaceutical and biomedical,
|
•
|
changes in the portions of our revenue represented by our various products and customers,
|
•
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our ability to introduce new products,
|
•
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our competitors’ announcement or introduction of new products, services or technological innovations,
|
•
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costs of raw materials, energy or supplies,
|
•
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changes in healthcare or other reimbursement rates paid by government agencies and other third parties for certain of our products and services,
|
•
|
our ability to realize the benefit of ongoing productivity initiatives,
|
•
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changes in the volume or timing of product orders,
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•
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fluctuation in the expense related to the mark-to-market adjustment on postretirement benefit plans,
|
•
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changes in our assumptions underlying future funding of pension obligations,
|
•
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changes in assumptions used to determine contingent consideration in acquisitions, and
|
•
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changes in foreign currency exchange rates.
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•
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changes in actual, or from projected, foreign currency exchange rates,
|
•
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changes in a country’s or region’s political or economic conditions, particularly in developing or emerging markets,
|
•
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longer payment cycles of foreign customers and timing of collections in foreign jurisdictions,
|
•
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trade protection measures including embargoes and tariffs, such as the tariffs recently implemented by the U.S. government on certain imports from China and by the Chinese government on certain imports from the U.S., the extent and impact of which have yet to be fully determined,
|
•
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import or export licensing requirements and the associated potential for delays or restrictions in the shipment of our products or the receipt of products from our suppliers,
|
•
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policies in foreign countries benefiting domestic manufacturers or other policies detrimental to companies headquartered in the United States,
|
•
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differing tax laws and changes in those laws, or changes in the countries in which we are subject to tax,
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•
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adverse income tax audit settlements or loss of previously negotiated tax incentives,
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•
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differing business practices associated with foreign operations,
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•
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difficulty in transferring cash between international operations and the United States,
|
•
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difficulty in staffing and managing widespread operations,
|
•
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differing labor laws and changes in those laws,
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•
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differing protection of intellectual property and changes in that protection,
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•
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expanded enforcement of laws related to data protection and personal privacy,
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•
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increasing global enforcement of anti-bribery and anti-corruption laws, and
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•
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differing regulatory requirements and changes in those requirements.
|
•
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requiring us to dedicate significant cash flow from operations to the payment of principal and interest on our debt, which reduces the funds we have available for other purposes, such as acquisitions and stock repurchases;
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•
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reducing our flexibility in planning for or reacting to changes in our business and market conditions; and
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•
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exposing us to interest rate risk since a portion of our debt obligations are at variable rates.
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pay dividends on, redeem or repurchase our capital stock,
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sell assets,
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incur obligations that restrict our subsidiaries’ ability to make dividend or other payments to us,
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•
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guarantee or secure indebtedness,
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•
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enter into transactions with affiliates, and
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consolidate, merge or transfer all, or substantially all, of our assets and the assets of our subsidiaries on a consolidated basis.
|
•
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operating results that vary from our financial guidance or the expectations of securities analysts and investors,
|
•
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the financial performance of the major end markets that we target,
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•
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the operating and securities price performance of companies that investors consider to be comparable to us,
|
•
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announcements of strategic developments, acquisitions and other material events by us or our competitors, and
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•
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changes in global financial markets and global economies and general market conditions, such as interest or foreign exchange rates, commodity and equity prices and the value of financial assets.
|
Item 1B.
|
Unresolved Staff Comments
|
Item 2.
|
Properties
|
|
Owned
|
|
Leased
|
|
Total
|
|||
|
(In square feet)
|
|||||||
Discovery & Analytical Solutions
|
158,285
|
|
|
1,319,811
|
|
|
1,478,096
|
|
Diagnostics
|
721,514
|
|
|
1,093,652
|
|
|
1,815,166
|
|
Corporate offices
|
—
|
|
|
54,667
|
|
|
54,667
|
|
Continuing operations
|
879,799
|
|
|
2,468,130
|
|
|
3,347,929
|
|
Item 3.
|
Legal Proceedings
|
Item 4.
|
Mine Safety Disclosures
|
Name
|
|
Position
|
|
Age
|
Robert F. Friel
|
|
Chairman and Chief Executive Officer
|
|
63
|
Prahlad Singh
|
|
President and Chief Operating Officer
|
|
54
|
James Corbett
|
|
Executive Vice President and President, Discovery & Analytical Solutions
|
|
56
|
James M. Mock
|
|
Senior Vice President and Chief Financial Officer
|
|
42
|
Joel S. Goldberg
|
|
Senior Vice President, Administration, General Counsel and Secretary
|
|
50
|
Daniel R. Tereau
|
|
Senior Vice President, Strategy and Business Development
|
|
52
|
Deborah Butters
|
|
Senior Vice President, Chief Human Resources Officer
|
|
49
|
Tajinder Vohra
|
|
Senior Vice President, Global Operations
|
|
53
|
Andrew Okun
|
|
Vice President and Chief Accounting Officer
|
|
49
|
Item 5.
|
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
|
|
Issuer Repurchases of Equity Securities
|
||||||||||||
Period
|
Total Number
of Shares
Purchased
(1)
|
|
Average Price
Paid Per
Share
|
|
Total Number of
Shares Purchased as
Part of Publicly
Announced Plans or
Programs
(2)
|
|
Maximum Aggregate Number (or Approximate Dollar Value) of Shares that May Yet
Be Purchased
Under the Plans or
Programs
|
||||||
October 1, 2018 - October 28, 2018
|
2,559
|
|
|
$
|
93.24
|
|
|
—
|
|
|
$
|
250,000,000
|
|
October 29, 2018 - November 25, 2018
|
650,379
|
|
|
80.28
|
|
|
650,000
|
|
|
197,803,699
|
|
||
November 26, 2018 - December 30, 2018
|
62
|
|
|
86.63
|
|
|
—
|
|
|
197,803,699
|
|
||
Activity for quarter ended December 30, 2018
|
653,000
|
|
|
$
|
80.33
|
|
|
650,000
|
|
|
$
|
197,803,699
|
|
(1)
|
Our Board has authorized us to repurchase shares of common stock to satisfy minimum statutory tax withholding obligations in connection with the vesting of restricted stock awards and restricted stock unit awards granted pursuant to our equity incentive plans and to satisfy obligations related to the exercise of stock options made pursuant to our equity incentive plans. During the fourth quarter of
fiscal year 2018
, we repurchased
3,000
shares of common stock for this purpose at an aggregate cost of
$0.3 million
. During the
fiscal year 2018
, we repurchased
66,506
shares of common stock for this purpose at an aggregate cost of
$5.2 million
. The repurchased shares have been reflected as additional authorized but unissued shares, with the payments reflected in common stock and capital in excess of par value.
|
(2)
|
On July 27, 2016, our Board authorized us to repurchase up to
8.0 million
shares of common stock under a stock repurchase program (the "Repurchase Program"). On July 23, 2018, our Board authorized us to immediately terminate the Repurchase Program and further authorized us to repurchase shares of common stock for an aggregate amount up to
$250.0 million
under a new stock repurchase program (the "New Repurchase Program"). The New Repurchase Program will expire on July 23, 2020 unless terminated earlier by our Board and may be suspended or discontinued at any time. During fiscal year 2018, we had no stock repurchases under the Repurchase Program. No shares remain available for repurchase under the Repurchase Program due to its cancellation. During the fourth quarter of
fiscal year 2018
, we repurchased
650,000
shares of common stock under the New Repurchase Program at an aggregate cost of
$52.2 million
. As of
December 30, 2018
,
$197.8 million
remained available for aggregate repurchases of shares under the New Repurchase Program.
|
|
29-Dec-13
|
|
28-Dec-14
|
|
3-Jan-16
|
|
1-Jan-17
|
|
31-Dec-17
|
|
30-Dec-18
|
||||||||||||
PerkinElmer, Inc.
|
$
|
100.00
|
|
|
$
|
107.71
|
|
|
$
|
131.70
|
|
|
$
|
128.91
|
|
|
$
|
181.56
|
|
|
$
|
192.59
|
|
S&P 500 Index
|
$
|
100.00
|
|
|
$
|
113.69
|
|
|
$
|
115.26
|
|
|
$
|
129.05
|
|
|
$
|
157.22
|
|
|
$
|
150.33
|
|
Peer Group
|
$
|
100.00
|
|
|
$
|
111.88
|
|
|
$
|
123.82
|
|
|
$
|
125.84
|
|
|
$
|
174.40
|
|
|
$
|
193.72
|
|
Item 6.
|
Selected Financial Data
|
|
Fiscal Years Ended
|
||||||||||||||||||
|
December 30,
2018 |
|
December 31,
2017 |
|
January 1,
2017 |
|
January 3,
2016 |
|
December 28,
2014 |
||||||||||
|
(In thousands, except per share data)
|
||||||||||||||||||
Statement of Operations Data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue
(1)
|
$
|
2,777,996
|
|
|
$
|
2,256,982
|
|
|
$
|
2,115,517
|
|
|
$
|
2,104,823
|
|
|
$
|
2,069,880
|
|
Operating income from continuing
operations
(2)(3)
|
323,884
|
|
|
295,615
|
|
|
294,582
|
|
|
258,517
|
|
|
240,287
|
|
|||||
Interest and other expense, net
(4)
|
66,201
|
|
|
(1,103
|
)
|
|
50,514
|
|
|
49,710
|
|
|
116,419
|
|
|||||
Income from continuing operations before income taxes
|
257,683
|
|
|
296,718
|
|
|
244,068
|
|
|
208,807
|
|
|
123,868
|
|
|||||
Income from continuing operations, net of income taxes
(5)
|
237,475
|
|
|
156,890
|
|
|
215,706
|
|
|
188,785
|
|
|
130,139
|
|
|||||
Income from discontinued operations and dispositions, net of income taxes
(6)
|
452
|
|
|
135,743
|
|
|
18,593
|
|
|
23,640
|
|
|
27,639
|
|
|||||
Net income
|
$
|
237,927
|
|
|
$
|
292,633
|
|
|
$
|
234,299
|
|
|
$
|
212,425
|
|
|
$
|
157,778
|
|
Basic earnings per share:
|
|
|
|
|
|
|
|
|
|
||||||||||
Continuing operations
|
$
|
2.15
|
|
|
$
|
1.43
|
|
|
$
|
1.97
|
|
|
$
|
1.68
|
|
|
$
|
1.16
|
|
Discontinued operations
|
0.00
|
|
|
1.24
|
|
|
0.17
|
|
|
0.21
|
|
|
0.25
|
|
|||||
Net income
|
$
|
2.15
|
|
|
$
|
2.66
|
|
|
$
|
2.14
|
|
|
$
|
1.89
|
|
|
$
|
1.40
|
|
Diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
||||||||||
Continuing operations
|
$
|
2.13
|
|
|
$
|
1.42
|
|
|
$
|
1.96
|
|
|
$
|
1.67
|
|
|
$
|
1.14
|
|
Discontinued operations
|
0.00
|
|
|
1.22
|
|
|
0.17
|
|
|
0.21
|
|
|
0.24
|
|
|||||
Net income
|
$
|
2.13
|
|
|
$
|
2.64
|
|
|
$
|
2.12
|
|
|
$
|
1.87
|
|
|
$
|
1.39
|
|
Weighted-average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic:
|
110,561
|
|
|
109,857
|
|
|
109,478
|
|
|
112,507
|
|
|
112,593
|
|
|||||
Diluted:
|
111,534
|
|
|
110,859
|
|
|
110,313
|
|
|
113,315
|
|
|
113,739
|
|
|||||
Cash dividends declared per common share
|
$
|
0.28
|
|
|
$
|
0.28
|
|
|
$
|
0.28
|
|
|
$
|
0.28
|
|
|
$
|
0.28
|
|
|
As of
|
||||||||||||||||||
|
December 30,
2018 |
|
December 31,
2017 |
|
January 1,
2017 |
|
January 3,
2016 |
|
December 28,
2014 |
||||||||||
|
(In thousands)
|
||||||||||||||||||
Balance Sheet Data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
$
|
5,975,522
|
|
|
$
|
6,091,463
|
|
|
$
|
4,276,683
|
|
|
$
|
4,166,295
|
|
|
$
|
4,127,576
|
|
Short-term debt
|
14,856
|
|
|
217,306
|
|
|
1,172
|
|
|
1,123
|
|
|
1,075
|
|
|||||
Long-term debt
(4)(7)
|
1,876,624
|
|
|
1,788,803
|
|
|
1,045,254
|
|
|
1,011,762
|
|
|
1,045,393
|
|
|||||
Stockholders’ equity
(1)(2)(8)
|
2,584,955
|
|
|
2,503,188
|
|
|
2,153,570
|
|
|
2,110,441
|
|
|
2,042,102
|
|
|||||
Common shares outstanding
(8)
|
110,597
|
|
|
110,361
|
|
|
109,617
|
|
|
112,034
|
|
|
112,481
|
|
(1)
|
At the beginning of fiscal year 2018, we adopted Accounting Standards Codification No. 606,
Revenue from Contracts with Customers
("ASC 606"), using a modified retrospective approach and as a result, the comparative information has not been restated and is reported under the accounting standards in effect for these years. See Note 1 to the Consolidated Financial Statements for additional information.
|
(2)
|
Activity related to the mark-to-market adjustment on postretirement benefit plans was a pre-tax
loss
of
$21.4 million
in
fiscal year 2018
, a pre-tax
gain
of
$2.1 million
in
fiscal year 2017
, a pre-tax
loss
of
$15.3 million
in
fiscal year 2016
, a pre-tax
loss
of
$12.4 million
in fiscal year
2015
and a pre-tax
loss
of
$75.4 million
in fiscal year
2014
.
|
(3)
|
We recorded pre-tax restructuring and contract termination charges, net, of
$11.1 million
in
fiscal year 2018
,
$12.7 million
in
fiscal year 2017
,
$5.1 million
in
fiscal year 2016
,
$13.5 million
in fiscal year
2015
and
$13.3 million
in fiscal year
2014
.
|
(4)
|
In fiscal years
2018
,
2017
,
2016
,
2015
and
2014
, interest expense was
$67.0 million
,
$43.9 million
,
$41.5 million
,
$38.0 million
and
$36.3 million
, respectively.
|
(5)
|
In
fiscal years 2018 and 2017
, provision for income tax on continuing operations was
$20.2 million
and
$139.8 million
, respectively. The higher provision for income taxes in
fiscal year 2017
compared to that of
fiscal year 2018
was primarily due to the
$106.5 million
discrete tax expense related to the Tax Cuts & Jobs Act of 2017. In
fiscal years 2016, 2015 and 2014
, tax expense (benefit) on continuing operations was
$28.4 million
,
$20.0 million
and
$(6.3) million
, respectively. The tax expense in fiscal years 2016 and 2015 was primarily due to income in high tax rate jurisdictions, partially offset by losses in low tax rate jurisdictions and a tax benefit of
$9.6 million
in fiscal year 2016 and
$6.4 million
in fiscal year 2015 related to discrete items. The benefit from income taxes in
fiscal year 2014
was primarily due to a tax benefit of
$7.1 million
related to discrete items and losses in high tax rate jurisdictions, partially offset by provision for income taxes related to profits in low tax rate jurisdictions.
|
(6)
|
In May 2017, we completed the sale of our Medical Imaging business. We recorded a pre-tax gain of
$179.6 million
and income tax expense of
$43.1 million
in fiscal year 2017. We accounted for this business as discontinued operations beginning in 2016 and the financial information relating to fiscal years
2015
and
2014
has been retrospectively adjusted to reflect the inclusion of this business in discontinued operations.
|
(7)
|
In April 2018, we issued and sold three-year senior notes at a rate of
0.6%
with a face value of
€300.0 million
and received
€298.7 million
of net proceeds from the issuance. The debt, which matures in April 2021, is unsecured. In July 2016, we issued and sold ten-year senior notes at a rate of
1.875%
with a face value of
€500.0 million
and received
€492.3 million
of net proceeds from the issuance. The debt, which matures in July 2026, is unsecured.
|
(8)
|
In fiscal year 2018, we repurchased in the open market
650,000
shares of our common stock at an aggregate cost of
$52.2 million
, including commissions, under the stock repurchase program authorized by our Board on July 23, 2018. In fiscal years 2018 and 2017, we did not repurchase any shares of our common stock under a stock repurchase program originally announced in July 2017 that was terminated in July 2018. In fiscal year 2016, we repurchased in the open market
3.2 million
shares of our common stock at an aggregate cost of
$148.2 million
, including commissions under a stock repurchase program originally announced in October 2014 that was terminated in July 2016 (the "October 2014 Repurchase Program"). In fiscal year 2015, we repurchased in the open market
1.5 million
shares of our common stock at an aggregate cost of
$72.0 million
, including commissions, under both the October 2014 Repurchase Program and a stock repurchase program originally announced in October 2012 that expired in October 2014 (the "October 2012 Repurchase Program"). In fiscal year 2014, we repurchased in the open market
1.4 million
shares of our common stock at an aggregate cost of
$61.3 million
, including commissions, under the October 2012 Repurchase Program. The repurchased shares have been reflected as additional authorized but unissued shares, with the payments reflected in common stock and capital in excess of par value.
|
Item 7.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
|
Workforce Reductions
|
|
Closure of Excess Facility
|
|
Total
|
|
(Expected) Date Payments Substantially Completed by
|
|||||||||||||||||||
|
Headcount Reduction
|
|
Diagnostics
|
|
Discovery & Analytical Solutions
|
|
Diagnostics
|
|
Discovery & Analytical Solutions
|
|
|
Severance
|
|
Excess Facility
|
||||||||||||
|
(In thousands, except headcount data)
|
|
|
|
|
|||||||||||||||||||||
Q4 2018 Plan
|
1
|
|
|
$
|
—
|
|
|
$
|
348
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
348
|
|
|
Q1 FY2019
|
|
—
|
Q3 2018 Plan
|
61
|
|
|
618
|
|
|
1,146
|
|
|
—
|
|
|
—
|
|
|
1,764
|
|
|
Q2 FY2019
|
|
—
|
|||||
Q1 2018 Plan
|
47
|
|
|
902
|
|
|
5,096
|
|
|
—
|
|
|
—
|
|
|
5,998
|
|
|
Q2 FY2019
|
|
—
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Q4 2017 Plan
|
29
|
|
|
255
|
|
|
1,680
|
|
|
—
|
|
|
—
|
|
|
1,935
|
|
|
Q1 FY2019
|
|
—
|
|||||
Q3 2017 Plan
|
27
|
|
|
1,021
|
|
|
1,321
|
|
|
—
|
|
|
—
|
|
|
2,342
|
|
|
Q4 FY2018
|
|
—
|
|||||
Q1 2017 Plan
|
90
|
|
|
1,631
|
|
|
5,000
|
|
|
33
|
|
|
33
|
|
|
6,697
|
|
|
Q2 FY2018
|
|
Q2 FY2018
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Q3 2016 Plan
|
22
|
|
|
41
|
|
|
1,779
|
|
|
—
|
|
|
—
|
|
|
1,820
|
|
|
Q4 FY2017
|
|
—
|
|||||
Q2 2016 Plan
|
72
|
|
|
561
|
|
|
4,106
|
|
|
—
|
|
|
—
|
|
|
4,667
|
|
|
Q3 FY2017
|
|
—
|
|
|
Balance at January 3, 2016
|
|
2016 Charges and Changes in Estimates, Net
|
|
2016 Amounts Paid
|
|
Balance at January 1, 2017
|
|
2017 Charges and Changes in Estimates, Net
|
|
2017 Amounts Paid
|
|
Balance at December 31, 2017
|
|
2018 Charges and Changes in Estimates, Net
|
|
2018 Amounts Paid
|
|
Balance at December 30, 2018
|
|
||||||||||||||||||||
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Severance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Q4 2018 Plan
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
348
|
|
|
$
|
—
|
|
|
$
|
348
|
|
|
Q3 2018 Plan
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,054
|
|
|
(639
|
)
|
|
1,415
|
|
|
||||||||||
Q1 2018 Plan
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,998
|
|
|
(4,389
|
)
|
|
1,609
|
|
|
||||||||||
Q4 2017
Plan
(1)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,935
|
|
|
(16
|
)
|
|
1,919
|
|
|
(381
|
)
|
|
(1,538
|
)
|
|
—
|
|
|
||||||||||
Q3 2017
Plan
(2)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,342
|
|
|
(270
|
)
|
|
2,072
|
|
|
(1,204
|
)
|
|
(868
|
)
|
|
—
|
|
|
||||||||||
Q1 2017 Plan
(3)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,631
|
|
|
(4,133
|
)
|
|
2,498
|
|
|
(983
|
)
|
|
(1,232
|
)
|
|
283
|
|
|
||||||||||
Q3 2016 Plan
|
|
—
|
|
|
1,820
|
|
|
(612
|
)
|
|
1,208
|
|
|
(202
|
)
|
|
(1,006
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||||||||
Q2 2016 Plan
|
|
—
|
|
|
4,667
|
|
|
(3,231
|
)
|
|
1,436
|
|
|
(829
|
)
|
|
(607
|
)
|
|
—
|
|
|
232
|
|
|
(156
|
)
|
|
76
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Facility:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Q1 2017 Plan
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
66
|
|
|
(33
|
)
|
|
33
|
|
|
—
|
|
|
(33
|
)
|
|
—
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Previous Plans
|
|
22,018
|
|
|
(1,451
|
)
|
|
(12,787
|
)
|
|
7,780
|
|
|
(537
|
)
|
|
(2,844
|
)
|
|
4,399
|
|
|
338
|
|
|
(2,425
|
)
|
|
2,312
|
|
|
||||||||||
Restructuring
|
|
22,018
|
|
|
5,036
|
|
|
(16,630
|
)
|
|
10,424
|
|
|
9,406
|
|
|
(8,909
|
)
|
|
10,921
|
|
|
6,402
|
|
|
(11,280
|
)
|
|
6,043
|
|
|
||||||||||
Contract Termination
|
|
132
|
|
|
88
|
|
|
(103
|
)
|
|
117
|
|
|
3,251
|
|
|
(320
|
)
|
|
3,048
|
|
|
4,742
|
|
|
(7,653
|
)
|
|
137
|
|
|
||||||||||
Total Restructuring and Contract Termination
|
|
$
|
22,150
|
|
|
$
|
5,124
|
|
|
$
|
(16,733
|
)
|
|
$
|
10,541
|
|
|
$
|
12,657
|
|
|
$
|
(9,229
|
)
|
|
$
|
13,969
|
|
|
$
|
11,144
|
|
|
$
|
(18,933
|
)
|
|
$
|
6,180
|
|
|
(1)
|
During
fiscal year 2018
, we recognized pre-tax restructuring reversals of
$0.2 million
each in the Discovery & Analytical Solutions and Diagnostics segments, related to lower than expected costs associated with workforce reductions for the Q4 2017 Plan.
|
(2)
|
During
fiscal year 2018
, we recognized pre-tax restructuring reversals of
$0.8 million
in the Discovery & Analytical Solutions segment and
$0.4 million
in the Diagnostics segment, related to lower than expected costs associated with workforce reductions for the Q3 2017 Plan.
|
(3)
|
During
fiscal year 2018
, we recognized pre-tax restructuring reversals of
$1.0 million
in the Discovery & Analytical Solutions segment, related to lower than expected costs associated with workforce reductions for the Q1 2017 Plan.
|
|
December 30,
2018 |
|
December 31,
2017 |
|
January 1,
2017 |
||||||
|
(In thousands)
|
||||||||||
Interest income
|
$
|
(1,141
|
)
|
|
$
|
(2,571
|
)
|
|
$
|
(702
|
)
|
Interest expense
|
66,976
|
|
|
43,940
|
|
|
41,528
|
|
|||
(Gain) loss on disposition of businesses and assets, net
|
(12,844
|
)
|
|
309
|
|
|
(5,562
|
)
|
|||
Other expense (income) , net
|
13,210
|
|
|
(42,781
|
)
|
|
15,250
|
|
|||
Total interest and other expense, net
|
$
|
66,201
|
|
|
$
|
(1,103
|
)
|
|
$
|
50,514
|
|
|
December 30,
2018 |
|
December 31,
2017 |
|
January 1,
2017 |
||||||
|
|
|
(In thousands)
|
||||||||
Tax at statutory rate
|
$
|
54,114
|
|
|
$
|
103,851
|
|
|
$
|
85,424
|
|
Non-U.S. rate differential, net
|
(27,281
|
)
|
|
(65,836
|
)
|
|
(52,648
|
)
|
|||
U.S. taxation of multinational operations
|
7,047
|
|
|
5,408
|
|
|
6,941
|
|
|||
State income taxes, net
|
2,028
|
|
|
1,810
|
|
|
1,509
|
|
|||
Prior year tax matters
|
(6,034
|
)
|
|
(7,955
|
)
|
|
(9,621
|
)
|
|||
Federal tax credits
|
(3,738
|
)
|
|
(8,249
|
)
|
|
(7,189
|
)
|
|||
Change in valuation allowance
|
(759
|
)
|
|
1,951
|
|
|
(2,755
|
)
|
|||
Non-deductible acquisition expense
|
—
|
|
|
—
|
|
|
5,701
|
|
|||
Impact of federal tax reform
|
(2,025
|
)
|
|
106,538
|
|
|
—
|
|
|||
Others, net
|
(3,144
|
)
|
|
2,310
|
|
|
1,000
|
|
|||
Total
|
$
|
20,208
|
|
|
$
|
139,828
|
|
|
$
|
28,362
|
|
|
December 30,
2018 |
|
December 31,
2017 |
|
January 1,
2017 |
||||||
|
(In thousands)
|
||||||||||
(Loss) gain on disposition of the Medical Imaging business
|
$
|
(793
|
)
|
|
$
|
179,615
|
|
|
$
|
—
|
|
Gain on disposition of Technical Services business
|
—
|
|
|
—
|
|
|
1,753
|
|
|||
Loss on disposition of Fluid Sciences Segment
|
(66
|
)
|
|
—
|
|
|
(1,134
|
)
|
|||
(Loss) gain on disposition of discontinued operations before income taxes
|
$
|
(859
|
)
|
|
$
|
179,615
|
|
|
$
|
619
|
|
|
December 30,
2018 |
|
December 31,
2017 |
|
January 1,
2017 |
||||||
|
(In thousands)
|
||||||||||
Revenue
|
$
|
—
|
|
|
$
|
44,343
|
|
|
$
|
146,217
|
|
Cost of revenue
|
—
|
|
|
32,933
|
|
|
95,395
|
|
|||
Selling, general and administrative expenses
|
—
|
|
|
5,869
|
|
|
13,657
|
|
|||
Research and development expenses
|
—
|
|
|
4,891
|
|
|
14,368
|
|
|||
Restructuring and contract termination charges, net
|
—
|
|
|
—
|
|
|
568
|
|
|||
Income from discontinued operations before income taxes
|
$
|
—
|
|
|
$
|
650
|
|
|
$
|
22,229
|
|
•
|
changes in sales due to weakness in markets in which we sell our products and services, and
|
•
|
changes in our working capital requirements.
|
•
|
financial covenants contained in the financial instruments controlling our borrowings that limit our total borrowing capacity,
|
•
|
increases in interest rates applicable to our outstanding variable rate debt,
|
•
|
a ratings downgrade that could limit the amount we can borrow under our senior unsecured revolving credit facility and our overall access to the corporate debt market,
|
•
|
increases in interest rates or credit spreads, as well as limitations on the availability of credit, that affect our ability to borrow under future potential facilities on a secured or unsecured basis,
|
•
|
a decrease in the market price for our common stock, and
|
•
|
volatility in the public debt and equity markets.
|
|
Operating
Leases
|
|
Sr. Unsecured
Revolving
Credit Facility
Maturing
2021
(1)
|
|
November
2021 Notes
(2)
|
|
April
2021 Notes
(3)
|
|
2026 Notes
(4)
|
|
Other Debt Facilities
(5)
|
|
Financing Lease Obligations
(6)
|
|
Employee
Benefit
Payments
(7)
|
|
Unrecognized
Tax Benefits
(8)
|
|
Total
|
||||||||||||||||||||
|
(In thousands)
|
||||||||||||||||||||||||||||||||||||||
2019
|
$
|
56,430
|
|
|
$
|
—
|
|
|
$
|
25,000
|
|
|
$
|
2,060
|
|
|
$
|
10,732
|
|
|
$
|
13,763
|
|
|
$
|
1,532
|
|
|
$
|
30,223
|
|
|
$
|
—
|
|
|
$
|
139,740
|
|
2020
|
46,621
|
|
|
—
|
|
|
25,000
|
|
|
2,060
|
|
|
10,732
|
|
|
8,818
|
|
|
1,597
|
|
|
30,751
|
|
|
—
|
|
|
125,579
|
|
||||||||||
2021
|
33,490
|
|
|
418,000
|
|
|
521,772
|
|
|
343,981
|
|
|
10,732
|
|
|
8,388
|
|
|
1,665
|
|
|
31,544
|
|
|
—
|
|
|
1,369,572
|
|
||||||||||
2022
|
22,129
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,732
|
|
|
4,027
|
|
|
1,657
|
|
|
31,804
|
|
|
—
|
|
|
70,349
|
|
||||||||||
2023
|
15,591
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,732
|
|
|
2,729
|
|
|
1,681
|
|
|
32,207
|
|
|
—
|
|
|
62,940
|
|
||||||||||
2024 and thereafter
|
67,582
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
599,622
|
|
|
1,475
|
|
|
4,698
|
|
|
163,910
|
|
|
—
|
|
|
837,287
|
|
||||||||||
Total
|
$
|
241,843
|
|
|
$
|
418,000
|
|
|
$
|
571,772
|
|
|
$
|
348,101
|
|
|
$
|
653,282
|
|
|
$
|
39,200
|
|
|
$
|
12,830
|
|
|
$
|
320,439
|
|
|
$
|
—
|
|
|
$
|
2,605,467
|
|
(1)
|
The credit facility borrowings carry variable interest rates. As of
December 30, 2018
, the senior unsecured revolving credit facility had a carrying value of
$415.6 million
.
|
(2)
|
The November 2021 Notes include interest obligations of
$71.8 million
. As of
December 30, 2018
, the November 2021 Notes had a carrying value of
$497.4 million
.
|
(3)
|
The April 2021 Notes include interest obligations of
$4.7 million
. As of
December 30, 2018
, the April 2021 Notes had a carrying value of
$341.3 million
.
|
(4)
|
The 2026 Notes include interest obligations of
$80.9 million
. As of
December 30, 2018
, the 2026 Notes had a carrying value of
$564.5 million
.
|
(5)
|
The other debt facilities include interest obligations of
$1.0 million
. As of
December 30, 2018
, the other debt facilities had a carrying value of
$38.2 million
.
|
(6)
|
The financing lease obligations do not include interest obligations.
|
(7)
|
Employee benefit payments only include obligations through fiscal year 2028.
|
(8)
|
We do not expect to cash settle any uncertain positions during fiscal year 2019. We have excluded
$1.0 million
, including accrued interest, net of tax benefits, and penalties, from our uncertain tax positions, as we cannot make a reasonably reliable estimate of the amount and period of related future payments.
|
|
|
|
Increase (Decrease) at
December 30, 2018 |
||||
|
Percentage Point Change
|
|
Non-U.S.
|
|
U.S.
|
||
Pension plans discount rate
|
+0.25
|
|
(11,836
|
)
|
|
(6,969
|
)
|
|
-0.25
|
|
12,591
|
|
|
7,278
|
|
Rate of return on pension plan assets
|
+1.00
|
|
(1,592
|
)
|
|
(2,343
|
)
|
|
-1.00
|
|
1,592
|
|
|
2,343
|
|
Postretirement medical plans discount rate
|
+0.25
|
|
N/A
|
|
(81
|
)
|
|
|
-0.25
|
|
N/A
|
|
85
|
|
|
Rate of return on postretirement medical plan assets
|
+1.00
|
|
N/A
|
|
(163
|
)
|
|
|
-1.00
|
|
N/A
|
|
163
|
|
Item 7A.
|
Quantitative and Qualitative Disclosures About Market Risk
|
Item 8.
|
Financial Statements and Supplemental Data
|
|
December 30,
2018 |
|
December 31,
2017 |
|
January 1,
2017 |
||||||
|
(In thousands, except per share data)
|
||||||||||
Revenue
|
|
|
|
|
|
||||||
Product revenue
|
$
|
1,935,493
|
|
|
$
|
1,477,414
|
|
|
$
|
1,396,896
|
|
Service revenue
|
842,503
|
|
|
779,568
|
|
|
718,621
|
|
|||
Total revenue
|
2,777,996
|
|
|
2,256,982
|
|
|
2,115,517
|
|
|||
Cost of product revenue
|
908,228
|
|
|
707,962
|
|
|
663,795
|
|
|||
Cost of service revenue
|
528,829
|
|
|
475,266
|
|
|
437,361
|
|
|||
Selling, general and administrative expenses
|
811,913
|
|
|
626,018
|
|
|
590,471
|
|
|||
Research and development expenses
|
193,998
|
|
|
139,464
|
|
|
124,184
|
|
|||
Restructuring and contract termination charges, net
|
11,144
|
|
|
12,657
|
|
|
5,124
|
|
|||
Operating income from continuing operations
|
323,884
|
|
|
295,615
|
|
|
294,582
|
|
|||
Interest and other expense, net
|
66,201
|
|
|
(1,103
|
)
|
|
50,514
|
|
|||
Income from continuing operations before income taxes
|
257,683
|
|
|
296,718
|
|
|
244,068
|
|
|||
Provision for income taxes
|
20,208
|
|
|
139,828
|
|
|
28,362
|
|
|||
Income from continuing operations
|
237,475
|
|
|
156,890
|
|
|
215,706
|
|
|||
Income from discontinued operations before income taxes
|
—
|
|
|
650
|
|
|
22,229
|
|
|||
(Loss) gain on disposition of discontinued operations before income taxes
|
(859
|
)
|
|
179,615
|
|
|
619
|
|
|||
(Benefit from) provision for income taxes on discontinued operations and dispositions
|
(1,311
|
)
|
|
44,522
|
|
|
4,255
|
|
|||
Income from discontinued operations and dispositions
|
452
|
|
|
135,743
|
|
|
18,593
|
|
|||
Net income
|
$
|
237,927
|
|
|
$
|
292,633
|
|
|
$
|
234,299
|
|
Basic earnings per share:
|
|
|
|
|
|
||||||
Income from continuing operations
|
$
|
2.15
|
|
|
$
|
1.43
|
|
|
$
|
1.97
|
|
Income from discontinued operations and dispositions
|
0.00
|
|
|
1.24
|
|
|
0.17
|
|
|||
Net income
|
$
|
2.15
|
|
|
$
|
2.67
|
|
|
$
|
2.14
|
|
Diluted earnings per share:
|
|
|
|
|
|
||||||
Income from continuing operations
|
$
|
2.13
|
|
|
$
|
1.42
|
|
|
$
|
1.96
|
|
Income from discontinued operations and dispositions
|
0.00
|
|
|
1.22
|
|
|
0.17
|
|
|||
Net income
|
$
|
2.13
|
|
|
$
|
2.64
|
|
|
$
|
2.12
|
|
|
December 30,
2018 |
|
December 31,
2017 |
|
January 1,
2017 |
||||||
|
(In thousands)
|
||||||||||
Net income
|
$
|
237,927
|
|
|
$
|
292,633
|
|
|
$
|
234,299
|
|
Other comprehensive (loss) income
|
|
|
|
|
|
||||||
Foreign currency translation adjustments, net of tax
|
(123,388
|
)
|
|
54,341
|
|
|
(54,077
|
)
|
|||
Reclassification of taxes on foreign currency translation adjustments to earnings upon adoption of ASU 2018-02
|
(6,489
|
)
|
|
—
|
|
|
—
|
|
|||
Unrecognized prior service costs, net of tax
|
(77
|
)
|
|
(77
|
)
|
|
(860
|
)
|
|||
Unrealized (losses) gains on securities, net of tax
|
(9
|
)
|
|
79
|
|
|
32
|
|
|||
Other comprehensive (loss) income
|
(129,963
|
)
|
|
54,343
|
|
|
(54,905
|
)
|
|||
Comprehensive income
|
$
|
107,964
|
|
|
$
|
346,976
|
|
|
$
|
179,394
|
|
|
December 30,
2018 |
|
December 31,
2017 |
||||
|
(In thousands, except share
and per share data)
|
||||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
163,111
|
|
|
$
|
202,134
|
|
Accounts receivable, net
|
632,669
|
|
|
552,304
|
|
||
Inventories
|
338,347
|
|
|
351,675
|
|
||
Other current assets
|
100,507
|
|
|
93,842
|
|
||
Total current assets
|
1,234,634
|
|
|
1,199,955
|
|
||
Property, plant and equipment, net
|
318,590
|
|
|
298,066
|
|
||
Intangible assets, net
|
1,199,667
|
|
|
1,346,940
|
|
||
Goodwill
|
2,952,608
|
|
|
3,002,198
|
|
||
Other assets, net
|
270,023
|
|
|
244,304
|
|
||
Total assets
|
$
|
5,975,522
|
|
|
$
|
6,091,463
|
|
Current liabilities:
|
|
|
|
||||
Current portion of long-term debt
|
$
|
14,856
|
|
|
$
|
217,306
|
|
Accounts payable
|
220,949
|
|
|
222,093
|
|
||
Accrued restructuring and contract termination charges
|
4,834
|
|
|
8,759
|
|
||
Accrued expenses and other current liabilities
|
528,827
|
|
|
500,642
|
|
||
Current liabilities of discontinued operations
|
2,165
|
|
|
2,102
|
|
||
Total current liabilities
|
771,631
|
|
|
950,902
|
|
||
Long-term debt
|
1,876,624
|
|
|
1,788,803
|
|
||
Long-term liabilities
|
742,312
|
|
|
848,570
|
|
||
Total liabilities
|
3,390,567
|
|
|
3,588,275
|
|
||
Commitments and contingencies (see Notes 15 and 18)
|
|
|
|
|
|
||
Stockholders’ equity:
|
|
|
|
||||
Preferred stock—$1 par value per share, authorized 1,000,000 shares; none issued or outstanding
|
—
|
|
|
—
|
|
||
Common stock—$1 par value per share, authorized 300,000,000 shares; issued and outstanding 110,597,000 and 110,361,000 shares at December 30, 2018 and December 31, 2017, respectively
|
110,597
|
|
|
110,361
|
|
||
Capital in excess of par value
|
48,772
|
|
|
58,828
|
|
||
Retained earnings
|
2,602,067
|
|
|
2,380,517
|
|
||
Accumulated other comprehensive loss
|
(176,481
|
)
|
|
(46,518
|
)
|
||
Total stockholders’ equity
|
2,584,955
|
|
|
2,503,188
|
|
||
Total liabilities and stockholders’ equity
|
$
|
5,975,522
|
|
|
$
|
6,091,463
|
|
|
Common
Stock
Amount
|
|
Capital in
Excess of
Par Value
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Total
Stockholders’
Equity
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Balance, January 3, 2016
|
$
|
112,034
|
|
|
$
|
52,932
|
|
|
$
|
1,991,431
|
|
|
$
|
(45,956
|
)
|
|
$
|
2,110,441
|
|
Adjustment to recognize prior year's unrecognized excess tax benefits upon adoption of ASU 2016-09
|
—
|
|
|
177
|
|
|
14,051
|
|
|
—
|
|
|
14,228
|
|
|||||
Net income
|
—
|
|
|
—
|
|
|
234,299
|
|
|
—
|
|
|
234,299
|
|
|||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(54,905
|
)
|
|
(54,905
|
)
|
|||||
Dividends
|
—
|
|
|
—
|
|
|
(30,629
|
)
|
|
—
|
|
|
(30,629
|
)
|
|||||
Exercise of employee stock options and related income tax benefits
|
576
|
|
|
13,842
|
|
|
—
|
|
|
—
|
|
|
14,418
|
|
|||||
Issuance of common stock for employee stock purchase plans
|
50
|
|
|
2,413
|
|
|
—
|
|
|
—
|
|
|
2,463
|
|
|||||
Purchases of common stock
|
(3,275
|
)
|
|
(58,058
|
)
|
|
(90,468
|
)
|
|
—
|
|
|
(151,801
|
)
|
|||||
Issuance of common stock for long-term incentive program
|
232
|
|
|
10,193
|
|
|
—
|
|
|
—
|
|
|
10,425
|
|
|||||
Stock compensation
|
—
|
|
|
4,631
|
|
|
—
|
|
|
—
|
|
|
4,631
|
|
|||||
Balance, January 1, 2017
|
$
|
109,617
|
|
|
$
|
26,130
|
|
|
$
|
2,118,684
|
|
|
$
|
(100,861
|
)
|
|
$
|
2,153,570
|
|
Net income
|
—
|
|
|
—
|
|
|
292,633
|
|
|
—
|
|
|
292,633
|
|
|||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
54,343
|
|
|
54,343
|
|
|||||
Dividends
|
—
|
|
|
—
|
|
|
(30,800
|
)
|
|
—
|
|
|
(30,800
|
)
|
|||||
Exercise of employee stock options and related income tax benefits
|
578
|
|
|
17,426
|
|
|
—
|
|
|
—
|
|
|
18,004
|
|
|||||
Issuance of common stock for employee stock purchase plans
|
37
|
|
|
2,430
|
|
|
—
|
|
|
—
|
|
|
2,467
|
|
|||||
Purchases of common stock
|
(79
|
)
|
|
(4,288
|
)
|
|
—
|
|
|
—
|
|
|
(4,367
|
)
|
|||||
Issuance of common stock for long-term incentive program
|
208
|
|
|
12,145
|
|
|
—
|
|
|
—
|
|
|
12,353
|
|
|||||
Stock compensation
|
—
|
|
|
4,985
|
|
|
—
|
|
|
—
|
|
|
4,985
|
|
|||||
Balance, December 31, 2017
|
$
|
110,361
|
|
|
$
|
58,828
|
|
|
$
|
2,380,517
|
|
|
$
|
(46,518
|
)
|
|
$
|
2,503,188
|
|
Cumulative effect of adopting ASC 606
|
—
|
|
|
—
|
|
|
10,209
|
|
|
—
|
|
|
10,209
|
|
|||||
Impact of adopting ASU 2016-16
|
—
|
|
|
—
|
|
|
(2,062
|
)
|
|
—
|
|
|
(2,062
|
)
|
|||||
Impact of adopting ASU 2018-02
|
—
|
|
|
—
|
|
|
6,489
|
|
|
(6,489
|
)
|
|
—
|
|
|||||
Net income
|
—
|
|
|
—
|
|
|
237,927
|
|
|
—
|
|
|
237,927
|
|
|||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(123,474
|
)
|
|
(123,474
|
)
|
|||||
Dividends
|
—
|
|
|
—
|
|
|
(31,013
|
)
|
|
—
|
|
|
(31,013
|
)
|
|||||
Exercise of employee stock options and related income tax benefits
|
709
|
|
|
24,124
|
|
|
—
|
|
|
—
|
|
|
24,833
|
|
|||||
Issuance of common stock for employee stock purchase plans
|
21
|
|
|
1,464
|
|
|
—
|
|
|
—
|
|
|
1,485
|
|
|||||
Purchases of common stock
|
(717
|
)
|
|
(56,676
|
)
|
|
—
|
|
|
—
|
|
|
(57,393
|
)
|
|||||
Issuance of common stock for long-term incentive program
|
223
|
|
|
15,650
|
|
|
—
|
|
|
—
|
|
|
15,873
|
|
|||||
Stock compensation
|
—
|
|
|
5,382
|
|
|
—
|
|
|
—
|
|
|
5,382
|
|
|||||
Balance, December 30, 2018
|
$
|
110,597
|
|
|
$
|
48,772
|
|
|
$
|
2,602,067
|
|
|
$
|
(176,481
|
)
|
|
$
|
2,584,955
|
|
|
December 30,
2018 |
|
December 31,
2017 |
|
January 1,
2017 |
||||||
|
(In thousands)
|
||||||||||
Operating activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
237,927
|
|
|
$
|
292,633
|
|
|
$
|
234,299
|
|
Income from discontinued operations and dispositions, net of income taxes
|
(452
|
)
|
|
(135,743
|
)
|
|
(18,593
|
)
|
|||
Income from continuing operations
|
237,475
|
|
|
156,890
|
|
|
215,706
|
|
|||
Adjustments to reconcile income from continuing operations to net cash provided by continuing operations:
|
|
|
|
|
|
||||||
Restructuring and contract termination charges, net
|
11,144
|
|
|
12,657
|
|
|
5,124
|
|
|||
Depreciation and amortization
|
180,588
|
|
|
105,000
|
|
|
99,972
|
|
|||
Stock-based compensation
|
28,767
|
|
|
25,421
|
|
|
17,158
|
|
|||
Pension and other postretirement expense (benefits)
|
11,915
|
|
|
(10,439
|
)
|
|
14,511
|
|
|||
Change in fair value of contingent consideration
|
14,639
|
|
|
2,162
|
|
|
16,183
|
|
|||
Deferred taxes
|
(51,103
|
)
|
|
28,854
|
|
|
(6,526
|
)
|
|||
Contingencies and non-cash tax matters
|
(671
|
)
|
|
182
|
|
|
(291
|
)
|
|||
Amortization of deferred debt issuance costs and accretion of discounts
|
3,341
|
|
|
2,592
|
|
|
2,137
|
|
|||
(Gain) loss on disposition of businesses and assets, net
|
(12,844
|
)
|
|
309
|
|
|
(5,562
|
)
|
|||
Amortization of acquired inventory revaluation
|
19,272
|
|
|
6,188
|
|
|
396
|
|
|||
Gain on sale of investments, net
|
(557
|
)
|
|
—
|
|
|
—
|
|
|||
Changes in assets and liabilities which provided (used) cash, excluding effects from companies acquired:
|
|
|
|
|
|
||||||
Accounts receivable, net
|
(94,512
|
)
|
|
(36,633
|
)
|
|
(18,960
|
)
|
|||
Inventories
|
(30,183
|
)
|
|
(17,923
|
)
|
|
6,752
|
|
|||
Accounts payable
|
8,900
|
|
|
34,331
|
|
|
30,716
|
|
|||
Accrued expenses and other
|
(14,933
|
)
|
|
(17,436
|
)
|
|
(53,540
|
)
|
|||
Net cash provided by operating activities of continuing operations
|
311,238
|
|
|
292,155
|
|
|
323,776
|
|
|||
Net cash (used in) provided by operating activities of discontinued operations
|
(200
|
)
|
|
(3,702
|
)
|
|
26,839
|
|
|||
Net cash provided by operating activities
|
311,038
|
|
|
288,453
|
|
|
350,615
|
|
|||
Investing activities:
|
|
|
|
|
|
||||||
Capital expenditures
|
(93,253
|
)
|
|
(39,089
|
)
|
|
(31,702
|
)
|
|||
Settlement of cash flow hedges
|
—
|
|
|
36,541
|
|
|
—
|
|
|||
Purchases of investments
|
(7,019
|
)
|
|
(10,783
|
)
|
|
—
|
|
|||
Proceeds from disposition of businesses
|
38,027
|
|
|
1,100
|
|
|
21,000
|
|
|||
Proceeds from surrender of life insurance policies
|
72
|
|
|
45
|
|
|
44
|
|
|||
Activity related to acquisitions, net of cash and cash equivalents acquired
|
(97,686
|
)
|
|
(1,527,183
|
)
|
|
(71,924
|
)
|
|||
Net cash used in investing activities of continuing operations
|
(159,859
|
)
|
|
(1,539,369
|
)
|
|
(82,582
|
)
|
|||
Net cash provided by (used in) investing activities of discontinued operations
|
—
|
|
|
272,779
|
|
|
(1,302
|
)
|
|||
Net cash used in investing activities
|
(159,859
|
)
|
|
(1,266,590
|
)
|
|
(83,884
|
)
|
|||
Financing activities:
|
|
|
|
|
|
||||||
Payments on borrowings
|
(1,264,000
|
)
|
|
(235,965
|
)
|
|
(902,507
|
)
|
|||
Proceeds from borrowings
|
857,000
|
|
|
1,060,952
|
|
|
420,507
|
|
|||
Proceeds from sale of senior debt
|
369,340
|
|
|
—
|
|
|
546,190
|
|
|||
Payments of debt financing costs
|
(2,634
|
)
|
|
—
|
|
|
(7,868
|
)
|
|||
Net payments on other credit facilities
|
(28,383
|
)
|
|
(2,831
|
)
|
|
(1,096
|
)
|
|||
Settlement of cash flow hedges
|
(34,132
|
)
|
|
(13,824
|
)
|
|
(1,900
|
)
|
|||
Payments for acquisition-related contingent consideration
|
(12,800
|
)
|
|
(8,940
|
)
|
|
(155
|
)
|
|||
Proceeds from issuance of common stock under stock plans
|
24,833
|
|
|
18,004
|
|
|
14,418
|
|
|||
Purchases of common stock
|
(57,445
|
)
|
|
(3,834
|
)
|
|
(151,801
|
)
|
|||
Dividends paid
|
(31,009
|
)
|
|
(30,793
|
)
|
|
(30,799
|
)
|
|||
Net cash (used in) provided by financing activities of continuing operations
|
(179,230
|
)
|
|
782,769
|
|
|
(115,011
|
)
|
|||
Net cash used in financing activities of discontinued operations
|
—
|
|
|
(533
|
)
|
|
—
|
|
|||
Net cash (used in) provided by financing activities
|
(179,230
|
)
|
|
782,236
|
|
|
(115,011
|
)
|
|||
Effect of exchange rate changes on cash, cash equivalents and restricted cash
|
(8,004
|
)
|
|
21,703
|
|
|
(13,422
|
)
|
|||
Net (decrease) increase in cash, cash equivalents and restricted cash
|
(36,055
|
)
|
|
(174,198
|
)
|
|
138,298
|
|
|||
Cash, cash equivalents and restricted cash at beginning of year
|
202,370
|
|
|
376,568
|
|
|
238,270
|
|
|||
Cash, cash equivalents and restricted cash at end of year
|
$
|
166,315
|
|
|
$
|
202,370
|
|
|
$
|
376,568
|
|
|
|
|
|
|
|
||||||
Supplemental disclosures of cash flow information
|
|
|
|
|
|
||||||
Reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total shown in the consolidated statements of cash flows:
|
|
|
|
|
|
||||||
Cash and cash equivalents
|
163,111
|
|
|
202,134
|
|
|
359,265
|
|
|||
Restricted cash included in other current assets
|
3,204
|
|
|
236
|
|
|
17,303
|
|
|||
Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows
|
$
|
166,315
|
|
|
$
|
202,370
|
|
|
$
|
376,568
|
|
|
|
|
|
|
|
||||||
Cash paid during the year for:
|
|
|
|
|
|
||||||
Interest
|
$
|
56,451
|
|
|
$
|
35,780
|
|
|
$
|
30,718
|
|
Income taxes
|
$
|
59,844
|
|
|
$
|
77,607
|
|
|
$
|
43,549
|
|
|
|
|
|
|
|
Note 1:
|
Nature of Operations and Accounting Policies
|
Products and services
|
Nature, timing of satisfaction of performance obligations, and significant payment terms
|
|
|
Instruments
|
For instruments that include installation, and if the installation meets the criteria to be considered a separate performance obligation, product revenue is generally recognized upon delivery or when title has transferred to the customer, which is generally the point in time where control of the products has been transferred to customers, and installation revenue is recognized when the installation is complete. Certain of the Company's products require specialized installation and configuration at the customer's site. Revenue for these products is deferred until installation is complete and customer acceptance has been received. Payment terms and conditions vary, although terms generally include a requirement of payment within 30 to 60 days.
|
Consumables and reagents
|
The Company recognizes revenue from the sale of consumables and reagents upon delivery or when title has transferred to the customer, which is generally the point in time where control of the products has been transferred to customers. Payment terms and conditions vary, although terms generally include a requirement of payment within 30 days.
|
Software licenses and subscriptions
|
Customers may purchase perpetual or term licenses, or subscribe to licenses, which provide customers with the same functionality and differ mainly in the duration over which the customer benefits from the software.
The Company sells its software subscriptions or software licenses with maintenance services and, in some cases, with consulting services. The Company recognizes revenue for the software upfront at the point in time when the software is made available to the customer. For maintenance and consulting services, revenue is recognized ratably over the period in which the services are provided. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 60 days. Software subscriptions and maintenance service contracts are non-cancelable.
|
Cloud services
|
Cloud services, which allow customers to use hosted software over the contract period without taking possession of the software, are provided on either a subscription or consumption basis. Revenue related to cloud services provided on a subscription basis is recognized ratably over the contract period. Revenue related to cloud services provided on a consumption basis, such as the amount of storage used in a period, is recognized based on the customer utilization of such resources. Payment terms are generally net 30 days from signing of contract and contracts are non-cancelable.
|
Extended warranty
|
The Company recognizes revenue for extended warranties on a straight-line basis over the extended warranty period in service revenue. In the majority of countries in which the Company operates, the customary warranty period is one year and the extended warranty covers periods beyond year one. Customers typically pay for extended warranties on an annual basis over the term of the warranty. In general, customers can cancel the extended warranty at any time with 30 days notice without significant penalty.
|
Laboratory services and training
|
The Company's service offerings include service contracts, field service, including related time and materials, and training. The Company recognizes revenue as the services are performed. Revenue for the service contracts is recognized over the contract period or at a point in time when the service is billable based on time and materials. The Company recognizes revenue as training is provided in service revenue. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 60 days. In general, customers can cancel the service contracts at any time with 30 to 90 days notice without significant penalty.
|
Products and services
|
Nature, timing of satisfaction of performance obligations, and significant payment terms
|
|
|
Instruments
|
For instruments that include installation, and if the installation meets the criteria to be considered a separate performance obligation, product revenue is generally recognized upon delivery or when title has transferred to the customer, which is generally the point in time where control of the products has been transferred to customers, and installation revenue is recognized when the installation is complete. Certain of the Company's products require specialized installation and configuration at the customer's site. Revenue for these products is deferred until installation is complete and customer acceptance has been received. Payment terms and conditions vary, although terms generally include a requirement of payment within 30 to 60 days.
|
Consumables and reagents
|
The Company recognizes revenue from the sale of consumables and reagents upon delivery or when title has transferred to the customer, which is generally the point in time where control of the products has been transferred to customers. Payment terms and conditions vary, although terms generally include a requirement of payment within 30 days.
|
Solutions
|
When the Company sells the instrument and reagents that work only on those instruments to a customer or distributor, the Company considers the instrument and reagents as separate performance obligations. The Company recognizes revenue when an instrument is sold to the customer upon delivery or when title has transferred to the customer, which is generally the point in time where control of the products has been transferred to customers. Revenue from the sale of reagents is also recognized at the time of delivery or when title has transferred to the customer. Payment terms for instrument and reagent sales are usually net 30 days from invoice date.
When the Company places the instrument at the customer's site and sells the reagents to a customer, the instrument and reagents are accounted for together as one performance obligation. The Company does not charge a fee for the use of the instrument and retains ownership of the placed instrument. The Company has a right to remove the instrument and replace it with another instrument at the customer's site at any time throughout the contract term. The Company recognizes revenue upon delivery of reagents, which is the point in time where the Company has performed its obligation to provide a screening solution to the customer. Payment terms are usually net 30 days from invoice date. Payment terms for certain contracts are based on equal installments over the duration of the contract.
|
Extended warranty
|
The Company recognizes revenue for extended warranties on a straight-line basis over the extended warranty period in service revenue. In the majority of countries in which the Company operates, the customary warranty period is one year and the extended warranty covers periods beyond year one. Customers typically pay for extended warranties on an annual basis over the term of the warranty. In general, customers can cancel the extended warranty at any time with 30 days notice without significant penalty.
|
Services
|
The Company's service offerings include cord blood processing and storage, and training. The Company recognizes revenue for the cord blood processing and training as the services are performed in service revenue. Revenue for the storage contracts are recognized over the contract period. Storage is typically for a period of 1, 20, or 25 years or lifetime. Lifetime storage is recognized over a certain period that is based on the life expectancy estimate from Social Security data. For cord blood processing, customers pay the processing fee in full at the point of sale. The processing fee is non-refundable unless the cord blood is non-viable for storage. For storage, customers are required to pay the storage fees in full upfront. Storage fees are refundable to the customer on a pro-rated basis if the contract is canceled.
|
|
Reportable Segments
|
||||||||||
|
For the fiscal year ended
|
||||||||||
|
December 30, 2018
|
||||||||||
|
Discovery & Analytical Solutions
|
|
Diagnostics
|
|
Total
|
||||||
|
(In thousands)
|
||||||||||
Primary geographical markets
|
|
|
|
|
|
||||||
Americas
|
$
|
680,117
|
|
|
$
|
385,005
|
|
|
$
|
1,065,122
|
|
Europe
|
494,707
|
|
|
283,385
|
|
|
778,092
|
|
|||
Asia
|
518,387
|
|
|
416,395
|
|
|
934,782
|
|
|||
|
$
|
1,693,211
|
|
|
$
|
1,084,785
|
|
|
$
|
2,777,996
|
|
|
|
|
|
|
|
||||||
Primary end-markets
|
|
|
|
|
|
||||||
Diagnostics
|
$
|
—
|
|
|
$
|
1,084,785
|
|
|
$
|
1,084,785
|
|
Life sciences
|
934,690
|
|
|
—
|
|
|
934,690
|
|
|||
Applied markets
|
758,521
|
|
|
—
|
|
|
758,521
|
|
|||
|
$
|
1,693,211
|
|
|
$
|
1,084,785
|
|
|
$
|
2,777,996
|
|
|
|
|
|
|
|
||||||
Timing of revenue recognition
|
|
|
|
|
|
||||||
Products and services transferred at a point in time
|
$
|
1,199,255
|
|
|
$
|
1,002,788
|
|
|
$
|
2,202,043
|
|
Services transferred over time
|
493,956
|
|
|
81,997
|
|
|
575,953
|
|
|||
|
$
|
1,693,211
|
|
|
$
|
1,084,785
|
|
|
$
|
2,777,996
|
|
|
As reported
|
|
Adjustments
|
|
Balances without adoption of ASC 606
|
||||||
|
(In thousands)
|
||||||||||
Cash and cash equivalents
|
$
|
163,111
|
|
|
$
|
—
|
|
|
$
|
163,111
|
|
Accounts receivable, net
|
632,669
|
|
|
(16,264
|
)
|
|
616,405
|
|
|||
Inventories
|
338,347
|
|
|
9,773
|
|
|
348,120
|
|
|||
Other current assets
|
100,507
|
|
|
(363
|
)
|
|
100,144
|
|
|||
Property, plant and equipment, net
|
318,590
|
|
|
—
|
|
|
318,590
|
|
|||
Intangible assets, net
|
1,199,667
|
|
|
—
|
|
|
1,199,667
|
|
|||
Goodwill
|
2,952,608
|
|
|
—
|
|
|
2,952,608
|
|
|||
Other assets, net
|
270,023
|
|
|
—
|
|
|
270,023
|
|
|||
Total assets
|
$
|
5,975,522
|
|
|
$
|
(6,854
|
)
|
|
$
|
5,968,668
|
|
Current portion of long-term debt
|
$
|
14,856
|
|
|
$
|
—
|
|
|
$
|
14,856
|
|
Accounts payable
|
220,949
|
|
|
—
|
|
|
220,949
|
|
|||
Accrued restructuring and contract termination charges
|
4,834
|
|
|
—
|
|
|
4,834
|
|
|||
Accrued expenses and other current liabilities
|
528,827
|
|
|
19,173
|
|
|
548,000
|
|
|||
Current liabilities of discontinued operations
|
2,165
|
|
|
—
|
|
|
2,165
|
|
|||
Long-term debt
|
1,876,624
|
|
|
—
|
|
|
1,876,624
|
|
|||
Long-term liabilities
|
742,312
|
|
|
—
|
|
|
742,312
|
|
|||
Total liabilities
|
3,390,567
|
|
|
19,173
|
|
|
3,409,740
|
|
|||
Commitments and contingencies
|
|
|
|
|
|
||||||
Preferred stock
|
—
|
|
|
—
|
|
|
—
|
|
|||
Common stock
|
110,597
|
|
|
—
|
|
|
110,597
|
|
|||
Capital in excess of par value
|
48,772
|
|
|
—
|
|
|
48,772
|
|
|||
Retained earnings
|
2,602,067
|
|
|
(26,027
|
)
|
|
2,576,040
|
|
|||
Accumulated other comprehensive loss
|
(176,481
|
)
|
|
—
|
|
|
(176,481
|
)
|
|||
Total stockholders’ equity
|
2,584,955
|
|
|
(26,027
|
)
|
|
2,558,928
|
|
|||
Total liabilities and stockholders’ equity
|
$
|
5,975,522
|
|
|
$
|
(6,854
|
)
|
|
$
|
5,968,668
|
|
|
As reported
|
|
Adjustments
|
|
Balances without adoption of ASC 606
|
||||||
|
(In thousands)
|
||||||||||
Product revenue
|
$
|
1,935,493
|
|
|
$
|
(31,441
|
)
|
|
$
|
1,904,052
|
|
Service revenue
|
842,503
|
|
|
—
|
|
|
842,503
|
|
|||
Total revenue
|
2,777,996
|
|
|
(31,441
|
)
|
|
2,746,555
|
|
|||
Cost of product revenue
|
908,228
|
|
|
(10,290
|
)
|
|
897,938
|
|
|||
Cost of service revenue
|
528,829
|
|
|
—
|
|
|
528,829
|
|
|||
Total cost of revenue
|
1,437,057
|
|
|
(10,290
|
)
|
|
1,426,767
|
|
|||
Selling, general and administrative expenses
|
811,913
|
|
|
329
|
|
|
812,242
|
|
|||
Research and development expenses
|
193,998
|
|
|
—
|
|
|
193,998
|
|
|||
Restructuring and contract termination charges, net
|
11,144
|
|
|
—
|
|
|
11,144
|
|
|||
Operating income from continuing operations
|
323,884
|
|
|
(21,480
|
)
|
|
302,404
|
|
|||
Interest and other expense, net
|
66,201
|
|
|
—
|
|
|
66,201
|
|
|||
Income from continuing operations before income taxes
|
257,683
|
|
|
(21,480
|
)
|
|
236,203
|
|
|||
Provision for income taxes
|
20,208
|
|
|
(5,662
|
)
|
|
14,546
|
|
|||
Income from continuing operations
|
237,475
|
|
|
(15,818
|
)
|
|
221,657
|
|
|||
Income from discontinued operations before income taxes
|
—
|
|
|
—
|
|
|
—
|
|
|||
Loss on disposition of discontinued operations before income taxes
|
(859
|
)
|
|
—
|
|
|
(859
|
)
|
|||
Benefit from income taxes on discontinued operations and dispositions
|
(1,311
|
)
|
|
—
|
|
|
(1,311
|
)
|
|||
Gain from discontinued operations and dispositions
|
452
|
|
|
—
|
|
|
452
|
|
|||
Net income
|
$
|
237,927
|
|
|
$
|
(15,818
|
)
|
|
$
|
222,109
|
|
|
2018 Acquisitions
|
||
|
(In thousands)
|
||
Fair value of business combination:
|
|
||
Cash payments
|
$
|
95,950
|
|
Other liability
|
3,354
|
|
|
Contingent consideration
|
6,200
|
|
|
Working capital and other adjustments
|
520
|
|
|
Less: cash acquired
|
(1,132
|
)
|
|
Total
|
$
|
104,892
|
|
Identifiable assets acquired and liabilities assumed:
|
|
||
Current assets
|
$
|
6,522
|
|
Property, plant and equipment
|
1,166
|
|
|
Other assets
|
891
|
|
|
Identifiable intangible assets:
|
|
||
Core technology
|
34,021
|
|
|
Trade names
|
1,070
|
|
|
Customer relationships
|
10,200
|
|
|
Goodwill
|
59,647
|
|
|
Deferred taxes
|
(3,860
|
)
|
|
Debt assumed
|
(461
|
)
|
|
Liabilities assumed
|
(4,304
|
)
|
|
Total
|
$
|
104,892
|
|
|
EUROIMMUN
|
|
2017 Other
|
||||
|
(In thousands)
|
||||||
Fair value of business combination:
|
|
|
|
||||
Cash payments
|
$
|
1,413,113
|
|
|
$
|
140,861
|
|
Other liability
|
—
|
|
|
1,273
|
|
||
Working capital and other adjustments
|
—
|
|
|
(93
|
)
|
||
Less: cash acquired
|
(25,018
|
)
|
|
(2,439
|
)
|
||
Total
|
$
|
1,388,095
|
|
|
$
|
139,602
|
|
Identifiable assets acquired and liabilities assumed:
|
|
|
|
||||
Current assets
|
$
|
121,174
|
|
|
$
|
16,268
|
|
Property, plant and equipment
|
109,859
|
|
|
11,356
|
|
||
Other assets
|
71,621
|
|
|
1,691
|
|
||
Identifiable intangible assets:
|
|
|
|
||||
Core technology
|
160,000
|
|
|
12,400
|
|
||
Trade names
|
36,000
|
|
|
3,000
|
|
||
Customer relationships
|
710,000
|
|
|
43,700
|
|
||
In-process research and development ("IPR&D")
|
1,400
|
|
|
—
|
|
||
Goodwill
|
591,304
|
|
|
75,250
|
|
||
Deferred taxes
|
(251,886
|
)
|
|
(15,735
|
)
|
||
Liabilities assumed
|
(100,020
|
)
|
|
(8,328
|
)
|
||
Debt assumed
|
(61,357
|
)
|
|
—
|
|
||
Total
|
$
|
1,388,095
|
|
|
$
|
139,602
|
|
|
2016 Acquisitions
|
||
|
(In thousands)
|
||
Fair value of business combination:
|
|
||
Cash payments
|
$
|
72,497
|
|
Working capital and other adjustments
|
(261
|
)
|
|
Less: cash acquired
|
(2,152
|
)
|
|
Total
|
$
|
70,084
|
|
Identifiable assets acquired and liabilities assumed:
|
|
||
Current assets
|
$
|
7,153
|
|
Property, plant and equipment
|
7,542
|
|
|
Identifiable intangible assets:
|
|
||
Core technology
|
6,600
|
|
|
Trade names
|
570
|
|
|
Customer relationships
|
14,900
|
|
|
Goodwill
|
43,072
|
|
|
Deferred taxes
|
(7,768
|
)
|
|
Liabilities assumed
|
(1,985
|
)
|
|
Total
|
$
|
70,084
|
|
Note 5:
|
Disposition of Businesses and Assets
|
|
December 30,
2018 |
|
December 31,
2017 |
|
January 1,
2017 |
||||||
|
(In thousands)
|
||||||||||
(Loss) gain on disposition of the Medical Imaging business
|
$
|
(793
|
)
|
|
$
|
179,615
|
|
|
$
|
—
|
|
Gain on disposition of Technical Services business
|
—
|
|
|
—
|
|
|
1,753
|
|
|||
Loss on disposition of Fluid Sciences Segment
|
(66
|
)
|
|
—
|
|
|
(1,134
|
)
|
|||
(Loss) gain on disposition of discontinued operations before income taxes
|
$
|
(859
|
)
|
|
$
|
179,615
|
|
|
$
|
619
|
|
|
December 30,
2018 |
|
December 31,
2017 |
|
January 1,
2017 |
||||||
|
(In thousands)
|
||||||||||
Revenue
|
$
|
—
|
|
|
$
|
44,343
|
|
|
$
|
146,217
|
|
Cost of revenue
|
—
|
|
|
32,933
|
|
|
95,395
|
|
|||
Selling, general and administrative expenses
|
—
|
|
|
5,869
|
|
|
13,657
|
|
|||
Research and development expenses
|
—
|
|
|
4,891
|
|
|
14,368
|
|
|||
Restructuring and contract termination charges, net
|
—
|
|
|
—
|
|
|
568
|
|
|||
Income from discontinued operations before income taxes
|
$
|
—
|
|
|
$
|
650
|
|
|
$
|
22,229
|
|
|
Workforce Reductions
|
|
Closure of Excess Facility
|
|
Total
|
|
(Expected) Date Payments Substantially Completed by
|
|||||||||||||||||||
|
Headcount Reduction
|
|
Diagnostics
|
|
Discovery & Analytical Solutions
|
|
Diagnostics
|
|
Discovery & Analytical Solutions
|
|
|
Severance
|
|
Excess Facility
|
||||||||||||
|
(In thousands, except headcount data)
|
|
|
|
|
|||||||||||||||||||||
Q4 2018 Plan
|
1
|
|
|
$
|
—
|
|
|
$
|
348
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
348
|
|
|
Q1 FY2019
|
|
—
|
Q3 2018 Plan
|
61
|
|
|
618
|
|
|
1,146
|
|
|
—
|
|
|
—
|
|
|
1,764
|
|
|
Q2 FY2019
|
|
—
|
|||||
Q1 2018 Plan
|
47
|
|
|
902
|
|
|
5,096
|
|
|
—
|
|
|
—
|
|
|
5,998
|
|
|
Q2 FY2019
|
|
—
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Q4 2017 Plan
|
29
|
|
|
255
|
|
|
1,680
|
|
|
—
|
|
|
—
|
|
|
1,935
|
|
|
Q1 FY2019
|
|
—
|
|||||
Q3 2017 Plan
|
27
|
|
|
1,021
|
|
|
1,321
|
|
|
—
|
|
|
—
|
|
|
2,342
|
|
|
Q4 FY2018
|
|
—
|
|||||
Q1 2017 Plan
|
90
|
|
|
1,631
|
|
|
5,000
|
|
|
33
|
|
|
33
|
|
|
6,697
|
|
|
Q2 FY2018
|
|
Q2 FY2018
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Q3 2016 Plan
|
22
|
|
|
41
|
|
|
1,779
|
|
|
—
|
|
|
—
|
|
|
1,820
|
|
|
Q4 FY2017
|
|
—
|
|||||
Q2 2016 Plan
|
72
|
|
|
561
|
|
|
4,106
|
|
|
—
|
|
|
—
|
|
|
4,667
|
|
|
Q3 FY2017
|
|
—
|
|
|
Balance at January 3, 2016
|
|
2016 Charges and Changes in Estimates, Net
|
|
2016 Amounts Paid
|
|
Balance at January 1, 2017
|
|
2017 Charges and Changes in Estimates, Net
|
|
2017 Amounts Paid
|
|
Balance at December 31, 2017
|
|
2018 Charges and Changes in Estimates, Net
|
|
2018 Amounts Paid
|
|
Balance at December 30, 2018
|
|
||||||||||||||||||||
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Severance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Q4 2018 Plan
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
348
|
|
|
$
|
—
|
|
|
$
|
348
|
|
|
Q3 2018 Plan
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,054
|
|
|
(639
|
)
|
|
1,415
|
|
|
||||||||||
Q1 2018 Plan
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,998
|
|
|
(4,389
|
)
|
|
1,609
|
|
|
||||||||||
Q4 2017 Plan
(1)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,935
|
|
|
(16
|
)
|
|
1,919
|
|
|
(381
|
)
|
|
(1,538
|
)
|
|
—
|
|
|
||||||||||
Q3 2017 Plan
(2)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,342
|
|
|
(270
|
)
|
|
2,072
|
|
|
(1,204
|
)
|
|
(868
|
)
|
|
—
|
|
|
||||||||||
Q1 2017 Plan
(3)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,631
|
|
|
(4,133
|
)
|
|
2,498
|
|
|
(983
|
)
|
|
(1,232
|
)
|
|
283
|
|
|
||||||||||
Q3 2016 Plan
|
|
—
|
|
|
1,820
|
|
|
(612
|
)
|
|
1,208
|
|
|
(202
|
)
|
|
(1,006
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||||||||
Q2 2016 Plan
|
|
—
|
|
|
4,667
|
|
|
(3,231
|
)
|
|
1,436
|
|
|
(829
|
)
|
|
(607
|
)
|
|
—
|
|
|
232
|
|
|
(156
|
)
|
|
76
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Facility:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Q1 2017 Plan
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
66
|
|
|
(33
|
)
|
|
33
|
|
|
—
|
|
|
(33
|
)
|
|
—
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Previous Plans
|
|
22,018
|
|
|
(1,451
|
)
|
|
(12,787
|
)
|
|
7,780
|
|
|
(537
|
)
|
|
(2,844
|
)
|
|
4,399
|
|
|
338
|
|
|
(2,425
|
)
|
|
2,312
|
|
|
||||||||||
Restructuring
|
|
22,018
|
|
|
5,036
|
|
|
(16,630
|
)
|
|
10,424
|
|
|
9,406
|
|
|
(8,909
|
)
|
|
10,921
|
|
|
6,402
|
|
|
(11,280
|
)
|
|
6,043
|
|
|
||||||||||
Contract Termination
|
|
132
|
|
|
88
|
|
|
(103
|
)
|
|
117
|
|
|
3,251
|
|
|
(320
|
)
|
|
3,048
|
|
|
4,742
|
|
|
(7,653
|
)
|
|
137
|
|
|
||||||||||
Total Restructuring and Contract Termination
|
|
$
|
22,150
|
|
|
$
|
5,124
|
|
|
$
|
(16,733
|
)
|
|
$
|
10,541
|
|
|
$
|
12,657
|
|
|
$
|
(9,229
|
)
|
|
$
|
13,969
|
|
|
$
|
11,144
|
|
|
$
|
(18,933
|
)
|
|
$
|
6,180
|
|
|
(1)
|
During
fiscal year 2018
, the Company recognized pre-tax restructuring reversals of
$0.2 million
each in the Discovery & Analytical Solutions and Diagnostics segments, related to lower than expected costs associated with workforce reductions for the Q4 2017 Plan.
|
(2)
|
During
fiscal year 2018
, the Company recognized pre-tax restructuring reversals of
$0.8 million
in the Discovery & Analytical Solutions segment and
$0.4 million
in the Diagnostics segment, related to lower than expected costs associated with workforce reductions for the Q3 2017 Plan.
|
(3)
|
During
fiscal year 2018
, the Company recognized pre-tax restructuring reversals of
$1.0 million
in the Discovery & Analytical Solutions segment, related to lower than expected costs associated with workforce reductions for the Q1 2017 Plan.
|
Note 7:
|
Interest and Other Expense, Net
|
|
December 30,
2018 |
|
December 31,
2017 |
|
January 1,
2017 |
||||||
|
|
|
|
||||||||
Interest income
|
$
|
(1,141
|
)
|
|
$
|
(2,571
|
)
|
|
$
|
(702
|
)
|
Interest expense
|
66,976
|
|
|
43,940
|
|
|
41,528
|
|
|||
(Gain) loss on disposition of businesses and assets, net (see Note 5)
|
(12,844
|
)
|
|
309
|
|
|
(5,562
|
)
|
|||
Other expense (income), net
|
13,210
|
|
|
(42,781
|
)
|
|
15,250
|
|
|||
Total interest and other expense, net
|
$
|
66,201
|
|
|
$
|
(1,103
|
)
|
|
$
|
50,514
|
|
Note 8:
|
Income Taxes
|
|
December 30,
2018 |
|
December 31,
2017 |
|
January 1,
2017 |
||||||
|
|
|
(In thousands)
|
||||||||
Unrecognized tax benefits, beginning of year
|
$
|
30,308
|
|
|
$
|
29,607
|
|
|
$
|
28,143
|
|
Gross increases—tax positions in prior periods
|
6,931
|
|
|
749
|
|
|
1,514
|
|
|||
Gross decreases—tax positions in prior periods
|
(1,622
|
)
|
|
(828
|
)
|
|
(183
|
)
|
|||
Gross increases—current-period tax positions
|
—
|
|
|
2,346
|
|
|
3,547
|
|
|||
Settlements
|
(2,253
|
)
|
|
(324
|
)
|
|
—
|
|
|||
Lapse of statute of limitations
|
(181
|
)
|
|
(1,371
|
)
|
|
(4,109
|
)
|
|||
Foreign currency translation adjustments
|
(174
|
)
|
|
129
|
|
|
695
|
|
|||
Unrecognized tax benefits, end of year
|
$
|
33,009
|
|
|
$
|
30,308
|
|
|
$
|
29,607
|
|
|
December 30,
2018 |
|
December 31,
2017 |
|
January 1,
2017 |
||||||
|
|
|
(In thousands)
|
||||||||
U.S.
|
$
|
32,627
|
|
|
$
|
3,743
|
|
|
$
|
39,689
|
|
Non-U.S.
|
225,056
|
|
|
292,975
|
|
|
204,379
|
|
|||
Total
|
$
|
257,683
|
|
|
$
|
296,718
|
|
|
$
|
244,068
|
|
|
Current Expense
|
|
Deferred Expense
(Benefit)
|
|
Total
|
||||||
|
(In thousands)
|
||||||||||
Fiscal year ended December 30, 2018
|
|
|
|
|
|
||||||
Federal
|
$
|
7,938
|
|
|
$
|
(5,250
|
)
|
|
$
|
2,688
|
|
State
|
2,345
|
|
|
2,572
|
|
|
4,917
|
|
|||
Non-U.S.
|
61,028
|
|
|
(48,425
|
)
|
|
12,603
|
|
|||
Total
|
$
|
71,311
|
|
|
$
|
(51,103
|
)
|
|
$
|
20,208
|
|
Fiscal year ended December 31, 2017
|
|
|
|
|
|
||||||
Federal
|
$
|
62,003
|
|
|
$
|
35,435
|
|
|
$
|
97,438
|
|
State
|
3,332
|
|
|
(792
|
)
|
|
2,540
|
|
|||
Non-U.S.
|
45,639
|
|
|
(5,789
|
)
|
|
39,850
|
|
|||
Total
|
$
|
110,974
|
|
|
$
|
28,854
|
|
|
$
|
139,828
|
|
Fiscal year ended January 1, 2017
|
|
|
|
|
|
||||||
Federal
|
$
|
14
|
|
|
$
|
2,994
|
|
|
$
|
3,008
|
|
State
|
2,143
|
|
|
(575
|
)
|
|
1,568
|
|
|||
Non-U.S.
|
30,754
|
|
|
(6,968
|
)
|
|
23,786
|
|
|||
Total
|
$
|
32,911
|
|
|
$
|
(4,549
|
)
|
|
$
|
28,362
|
|
|
December 30,
2018 |
|
December 31,
2017 |
|
January 1,
2017 |
||||||
|
(In thousands)
|
||||||||||
Continuing operations
|
$
|
20,208
|
|
|
$
|
139,828
|
|
|
$
|
28,362
|
|
Discontinued operations
|
(1,311
|
)
|
|
44,522
|
|
|
4,255
|
|
|||
Total
|
$
|
18,897
|
|
|
$
|
184,350
|
|
|
$
|
32,617
|
|
|
December 30,
2018 |
|
December 31,
2017 |
|
January 1,
2017 |
||||||
|
|
|
(In thousands)
|
||||||||
Tax at statutory rate
|
$
|
54,114
|
|
|
$
|
103,851
|
|
|
$
|
85,424
|
|
Non-U.S. rate differential, net
|
(27,281
|
)
|
|
(65,836
|
)
|
|
(52,648
|
)
|
|||
U.S. taxation of multinational operations
|
7,047
|
|
|
5,408
|
|
|
6,941
|
|
|||
State income taxes, net
|
2,028
|
|
|
1,810
|
|
|
1,509
|
|
|||
Prior year tax matters
|
(6,034
|
)
|
|
(7,955
|
)
|
|
(9,621
|
)
|
|||
Federal tax credits
|
(3,738
|
)
|
|
(8,249
|
)
|
|
(7,189
|
)
|
|||
Change in valuation allowance
|
(759
|
)
|
|
1,951
|
|
|
(2,755
|
)
|
|||
Non-deductible acquisition expense
|
—
|
|
|
—
|
|
|
5,701
|
|
|||
Impact of federal tax reform
|
(2,025
|
)
|
|
106,538
|
|
|
—
|
|
|||
Others, net
|
(3,144
|
)
|
|
2,310
|
|
|
1,000
|
|
|||
Total
|
$
|
20,208
|
|
|
$
|
139,828
|
|
|
$
|
28,362
|
|
|
December 30,
2018 |
|
December 31,
2017 |
||||
|
(In thousands)
|
||||||
Deferred tax assets:
|
|
|
|
||||
Inventory
|
$
|
—
|
|
|
$
|
6,376
|
|
Reserves and accruals
|
39,487
|
|
|
26,657
|
|
||
Accrued compensation
|
21,709
|
|
|
17,333
|
|
||
Net operating loss and credit carryforwards
|
144,421
|
|
|
88,503
|
|
||
Accrued pension
|
31,146
|
|
|
34,682
|
|
||
Restructuring reserve
|
1,780
|
|
|
2,586
|
|
||
Deferred revenue
|
31,045
|
|
|
28,478
|
|
||
Unrealized foreign exchange loss
|
—
|
|
|
10,910
|
|
||
Total deferred tax assets
|
269,588
|
|
|
215,525
|
|
||
Deferred tax liabilities:
|
|
|
|
||||
Inventory
|
(278
|
)
|
|
—
|
|
||
Postretirement health benefits
|
(3,406
|
)
|
|
(3,391
|
)
|
||
Depreciation and amortization
|
(309,958
|
)
|
|
(392,293
|
)
|
||
All other, net
|
(1,879
|
)
|
|
(594
|
)
|
||
Total deferred tax liabilities
|
(315,521
|
)
|
|
(396,278
|
)
|
||
Valuation allowance
|
(102,087
|
)
|
|
(68,895
|
)
|
||
Net deferred tax liabilities
|
$
|
(148,020
|
)
|
|
$
|
(249,648
|
)
|
|
December 30,
2018 |
|
December 31,
2017 |
||||
|
(In thousands)
|
||||||
Other assets, net
|
$
|
79,312
|
|
|
$
|
67,280
|
|
Long-term liabilities
|
(227,332
|
)
|
|
(316,928
|
)
|
||
Total
|
$
|
(148,020
|
)
|
|
$
|
(249,648
|
)
|
|
December 30,
2018 |
|
December 31,
2017 |
||||
|
(In thousands)
|
||||||
U.S.
|
$
|
52,469
|
|
|
$
|
44,974
|
|
Non-U.S.
|
(200,489
|
)
|
|
(294,622
|
)
|
||
Total
|
$
|
(148,020
|
)
|
|
$
|
(249,648
|
)
|
Note 9:
|
Earnings Per Share
|
|
December 30,
2018 |
|
December 31,
2017 |
|
January 1,
2017 |
|||
|
(In thousands)
|
|||||||
Number of common shares—basic
|
110,561
|
|
|
109,857
|
|
|
109,478
|
|
Effect of dilutive securities:
|
|
|
|
|
|
|||
Stock options
|
761
|
|
|
708
|
|
|
640
|
|
Restricted stock awards
|
212
|
|
|
294
|
|
|
195
|
|
Number of common shares—diluted
|
111,534
|
|
|
110,859
|
|
|
110,313
|
|
Number of potentially dilutive securities excluded from calculation due to antidilutive impact
|
349
|
|
|
287
|
|
|
458
|
|
Note 10:
|
Accounts Receivable, Net
|
Note 11:
|
Inventories
|
|
December 30,
2018 |
|
December 31,
2017 |
||||
|
(In thousands)
|
||||||
Raw materials
|
$
|
119,115
|
|
|
$
|
122,100
|
|
Work in progress
|
18,110
|
|
|
18,452
|
|
||
Finished goods
|
201,122
|
|
|
211,123
|
|
||
Total inventories
|
$
|
338,347
|
|
|
$
|
351,675
|
|
Note 12:
|
Property, Plant and Equipment, Net
|
|
December 30,
2018 |
|
December 31,
2017 |
||||
|
(In thousands)
|
||||||
At cost:
|
|
|
|
||||
Land
|
$
|
5,482
|
|
|
$
|
5,624
|
|
Building and leasehold improvements
|
272,277
|
|
|
262,657
|
|
||
Machinery and equipment
|
402,424
|
|
|
362,638
|
|
||
Total property, plant and equipment
|
680,183
|
|
|
630,919
|
|
||
Accumulated depreciation
|
(361,593
|
)
|
|
(332,853
|
)
|
||
Total property, plant and equipment, net
|
$
|
318,590
|
|
|
$
|
298,066
|
|
Note 13:
|
Marketable Securities and Investments
|
|
December 30,
2018 |
|
December 31,
2017 |
||||
|
(In thousands)
|
||||||
Marketable securities
|
$
|
2,447
|
|
|
$
|
2,208
|
|
Cost method investments
|
16,783
|
|
|
10,783
|
|
||
|
$
|
19,230
|
|
|
$
|
12,991
|
|
|
Market Value
|
|
Gross Unrealized Holding
|
||||||||||||
|
Cost
|
|
Gains
|
|
(Losses)
|
||||||||||
|
|
(In thousands)
|
|
|
|||||||||||
December 30, 2018
|
|
|
|
|
|
|
|
||||||||
Equity securities
|
$
|
671
|
|
|
$
|
1,037
|
|
|
$
|
—
|
|
|
$
|
(366
|
)
|
Fixed-income securities
|
22
|
|
|
22
|
|
|
—
|
|
|
—
|
|
||||
Other
|
1,754
|
|
|
1,817
|
|
|
—
|
|
|
(63
|
)
|
||||
|
$
|
2,447
|
|
|
$
|
2,876
|
|
|
$
|
—
|
|
|
$
|
(429
|
)
|
December 31, 2017
|
|
|
|
|
|
|
|
||||||||
Equity securities
|
$
|
811
|
|
|
$
|
1,161
|
|
|
$
|
—
|
|
|
$
|
(350
|
)
|
Fixed-income securities
|
22
|
|
|
22
|
|
|
—
|
|
|
—
|
|
||||
Other
|
1,375
|
|
|
1,438
|
|
|
—
|
|
|
(63
|
)
|
||||
|
$
|
2,208
|
|
|
$
|
2,621
|
|
|
$
|
—
|
|
|
$
|
(413
|
)
|
Note 14:
|
Goodwill and Intangible Assets, Net
|
|
|
Discovery & Analytical Solutions
|
|
Diagnostics
|
|
Consolidated
|
||||||
|
|
|||||||||||
Balance at January 1, 2017
|
|
$
|
1,303,936
|
|
|
$
|
944,030
|
|
|
$
|
2,247,966
|
|
Foreign currency translation
|
|
37,646
|
|
|
29,091
|
|
|
66,737
|
|
|||
Acquisitions, earnouts and other
|
|
2,653
|
|
|
684,842
|
|
|
687,495
|
|
|||
Balance at December 31, 2017
|
|
1,344,235
|
|
|
1,657,963
|
|
|
3,002,198
|
|
|||
Foreign currency translation
|
|
(32,189
|
)
|
|
(35,289
|
)
|
|
(67,478
|
)
|
|||
Acquisitions, earnouts and other
|
|
22,946
|
|
|
(5,058
|
)
|
|
17,888
|
|
|||
Balance at December 30, 2018
|
|
$
|
1,334,992
|
|
|
$
|
1,617,616
|
|
|
$
|
2,952,608
|
|
|
Discovery & Analytical Solutions
|
|
Diagnostics
|
|
Consolidated
|
||||||
|
|
||||||||||
Patents
|
$
|
28,030
|
|
|
$
|
14,616
|
|
|
$
|
42,646
|
|
Less: Accumulated amortization
|
(25,978
|
)
|
|
(11,775
|
)
|
|
(37,753
|
)
|
|||
Net patents
|
2,052
|
|
|
2,841
|
|
|
4,893
|
|
|||
Trade names and trademarks
|
29,811
|
|
|
48,335
|
|
|
78,146
|
|
|||
Less: Accumulated amortization
|
(21,728
|
)
|
|
(12,073
|
)
|
|
(33,801
|
)
|
|||
Net trade names and trademarks
|
8,083
|
|
|
36,262
|
|
|
44,345
|
|
|||
Licenses
|
50,178
|
|
|
3,127
|
|
|
53,305
|
|
|||
Less: Accumulated amortization
|
(44,376
|
)
|
|
(1,174
|
)
|
|
(45,550
|
)
|
|||
Net licenses
|
5,802
|
|
|
1,953
|
|
|
7,755
|
|
|||
Core technology
|
240,734
|
|
|
300,177
|
|
|
540,911
|
|
|||
Less: Accumulated amortization
|
(189,033
|
)
|
|
(76,711
|
)
|
|
(265,744
|
)
|
|||
Net core technology
|
51,701
|
|
|
223,466
|
|
|
275,167
|
|
|||
Customer relationships
|
222,892
|
|
|
866,635
|
|
|
1,089,527
|
|
|||
Less: Accumulated amortization
|
(128,142
|
)
|
|
(165,822
|
)
|
|
(293,964
|
)
|
|||
Net customer relationships
|
94,750
|
|
|
700,813
|
|
|
795,563
|
|
|||
IPR&D
|
—
|
|
|
1,360
|
|
|
1,360
|
|
|||
Net amortizable intangible assets
|
162,388
|
|
|
966,695
|
|
|
1,129,083
|
|
|||
Non-amortizing intangible asset:
|
|
|
|
|
|
||||||
Trade name
|
70,584
|
|
|
—
|
|
|
70,584
|
|
|||
Total
|
$
|
232,972
|
|
|
$
|
966,695
|
|
|
$
|
1,199,667
|
|
|
Discovery & Analytical Solutions
|
|
Diagnostics
|
|
Consolidated
|
||||||
|
|
||||||||||
Patents
|
$
|
28,048
|
|
|
$
|
11,911
|
|
|
$
|
39,959
|
|
Less: Accumulated amortization
|
(24,448
|
)
|
|
(10,637
|
)
|
|
(35,085
|
)
|
|||
Net patents
|
3,600
|
|
|
1,274
|
|
|
4,874
|
|
|||
Trade names and trademarks
|
29,950
|
|
|
51,024
|
|
|
80,974
|
|
|||
Less: Accumulated amortization
|
(20,022
|
)
|
|
(8,228
|
)
|
|
(28,250
|
)
|
|||
Net trade names and trademarks
|
9,928
|
|
|
42,796
|
|
|
52,724
|
|
|||
Licenses
|
43,061
|
|
|
10,239
|
|
|
53,300
|
|
|||
Less: Accumulated amortization
|
(34,620
|
)
|
|
(8,015
|
)
|
|
(42,635
|
)
|
|||
Net licenses
|
8,441
|
|
|
2,224
|
|
|
10,665
|
|
|||
Core technology
|
236,324
|
|
|
243,435
|
|
|
479,759
|
|
|||
Less: Accumulated amortization
|
(190,423
|
)
|
|
(59,920
|
)
|
|
(250,343
|
)
|
|||
Net core technology
|
45,901
|
|
|
183,515
|
|
|
229,416
|
|
|||
Customer relationships
|
233,573
|
|
|
907,938
|
|
|
1,141,511
|
|
|||
Less: Accumulated amortization
|
(116,696
|
)
|
|
(126,144
|
)
|
|
(242,840
|
)
|
|||
Net customer relationships
|
116,877
|
|
|
781,794
|
|
|
898,671
|
|
|||
IPR&D
|
—
|
|
|
80,006
|
|
|
80,006
|
|
|||
Net amortizable intangible assets
|
184,747
|
|
|
1,091,609
|
|
|
1,276,356
|
|
|||
Non-amortizing intangible asset:
|
|
|
|
|
|
||||||
Trade name
|
70,584
|
|
|
—
|
|
|
70,584
|
|
|||
Total
|
$
|
255,331
|
|
|
$
|
1,091,609
|
|
|
$
|
1,346,940
|
|
Note 15:
|
Debt
|
|
Sr. Unsecured
Revolving
Credit Facility
Maturing 2021
|
|
November 2021 Notes
|
|
April 2021 Notes
|
|
2026 Notes
|
|
Other Debt Facilities
|
|
Financing Lease Obligations
|
|
Total
|
||||||||||||||
|
(In thousands)
|
||||||||||||||||||||||||||
2019
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
13,324
|
|
|
$
|
1,532
|
|
|
$
|
14,856
|
|
2020
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,527
|
|
|
1,597
|
|
|
10,124
|
|
|||||||
2021
|
418,000
|
|
|
500,000
|
|
|
343,410
|
|
|
—
|
|
|
8,197
|
|
|
1,665
|
|
|
1,271,272
|
|
|||||||
2022
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,907
|
|
|
1,657
|
|
|
5,564
|
|
|||||||
2023
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,641
|
|
|
1,681
|
|
|
4,322
|
|
|||||||
2024 and thereafter
|
—
|
|
|
—
|
|
|
—
|
|
|
572,350
|
|
|
1,574
|
|
|
4,698
|
|
|
578,622
|
|
|||||||
Total before unamortized discount and debt issuance costs and non-cash finance lease liabilities
|
418,000
|
|
|
500,000
|
|
|
343,410
|
|
|
572,350
|
|
|
38,170
|
|
|
12,830
|
|
|
1,884,760
|
|
|||||||
Unamortized discount and debt issuance costs
|
(2,401
|
)
|
|
(2,628
|
)
|
|
(2,133
|
)
|
|
(7,806
|
)
|
|
—
|
|
|
—
|
|
|
(14,968
|
)
|
|||||||
Non-cash finance lease liabilities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21,688
|
|
|
21,688
|
|
|||||||
Total
|
$
|
415,599
|
|
|
$
|
497,372
|
|
|
$
|
341,277
|
|
|
$
|
564,544
|
|
|
$
|
38,170
|
|
|
$
|
34,518
|
|
|
$
|
1,891,480
|
|
Note 16:
|
Accrued Expenses and Other Current Liabilities
|
|
December 30,
2018 |
|
December 31,
2017 |
||||
|
(In thousands)
|
||||||
Payroll and incentives
|
$
|
86,549
|
|
|
$
|
66,955
|
|
Employee benefits
|
44,060
|
|
|
37,354
|
|
||
Deferred revenue
|
155,064
|
|
|
159,923
|
|
||
Federal, non-U.S. and state income taxes
|
30,687
|
|
|
10,800
|
|
||
Other accrued operating expenses
|
212,467
|
|
|
225,610
|
|
||
Total accrued expenses and other current liabilities
|
$
|
528,827
|
|
|
$
|
500,642
|
|
Note 17:
|
Employee Benefit Plans
|
|
December 30,
2018 |
|
December 31,
2017 |
|
January 1,
2017 |
||||||
|
(In thousands)
|
||||||||||
Service and administrative costs
|
$
|
6,853
|
|
|
$
|
4,951
|
|
|
$
|
4,337
|
|
Interest cost
|
16,146
|
|
|
16,707
|
|
|
18,638
|
|
|||
Expected return on plan assets
|
(28,939
|
)
|
|
(26,401
|
)
|
|
(24,245
|
)
|
|||
Actuarial loss (gain)
|
17,146
|
|
|
(7,085
|
)
|
|
15,890
|
|
|||
Amortization of prior service cost
|
375
|
|
|
(195
|
)
|
|
(210
|
)
|
|||
Net periodic pension cost (credit)
|
$
|
11,581
|
|
|
$
|
(12,023
|
)
|
|
$
|
14,410
|
|
|
December 30, 2018
|
|
December 31, 2017
|
||||||||||||
Non-U.S.
|
|
U.S.
|
|
Non-U.S.
|
|
U.S.
|
|||||||||
(In thousands)
|
|||||||||||||||
Actuarial present value of benefit obligations:
|
|
|
|
|
|
|
|
||||||||
Accumulated benefit obligations
|
$
|
304,065
|
|
|
$
|
283,310
|
|
|
$
|
334,151
|
|
|
$
|
308,713
|
|
Change in benefit obligations:
|
|
|
|
|
|
|
|
||||||||
Projected benefit obligations at beginning of year
|
$
|
343,410
|
|
|
$
|
308,713
|
|
|
$
|
279,522
|
|
|
$
|
300,650
|
|
Service and administrative costs
|
4,528
|
|
|
2,325
|
|
|
2,201
|
|
|
2,750
|
|
||||
Interest cost
|
5,484
|
|
|
10,662
|
|
|
4,870
|
|
|
11,836
|
|
||||
Benefits paid and plan expenses
|
(13,081
|
)
|
|
(19,709
|
)
|
|
(13,238
|
)
|
|
(20,032
|
)
|
||||
Participants’ contributions
|
176
|
|
|
—
|
|
|
189
|
|
|
—
|
|
||||
Business acquisition
|
537
|
|
|
—
|
|
|
39,293
|
|
|
—
|
|
||||
Plan amendments
|
533
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Actuarial (gain) loss
|
(13,141
|
)
|
|
(18,681
|
)
|
|
(1,486
|
)
|
|
13,509
|
|
||||
Effect of exchange rate changes
|
(17,278
|
)
|
|
—
|
|
|
32,059
|
|
|
—
|
|
||||
Projected benefit obligations at end of year
|
$
|
311,168
|
|
|
$
|
283,310
|
|
|
$
|
343,410
|
|
|
$
|
308,713
|
|
Change in plan assets:
|
|
|
|
|
|
|
|
||||||||
Fair value of plan assets at beginning of year
|
$
|
179,736
|
|
|
$
|
253,427
|
|
|
$
|
153,281
|
|
|
$
|
243,817
|
|
Actual return on plan assets
|
(5,653
|
)
|
|
(14,376
|
)
|
|
15,866
|
|
|
29,642
|
|
||||
Benefits paid and plan expenses
|
(13,081
|
)
|
|
(19,709
|
)
|
|
(13,238
|
)
|
|
(20,032
|
)
|
||||
Employer’s contributions
|
8,480
|
|
|
15,000
|
|
|
8,422
|
|
|
—
|
|
||||
Participants’ contributions
|
176
|
|
|
—
|
|
|
189
|
|
|
—
|
|
||||
Effect of exchange rate changes
|
(10,495
|
)
|
|
—
|
|
|
15,216
|
|
|
—
|
|
||||
Fair value of plan assets at end of year
|
$
|
159,163
|
|
|
$
|
234,342
|
|
|
$
|
179,736
|
|
|
$
|
253,427
|
|
Net liabilities recognized in the consolidated balance sheets
|
$
|
(152,005
|
)
|
|
$
|
(48,968
|
)
|
|
$
|
(163,674
|
)
|
|
$
|
(55,286
|
)
|
|
|
|
|
|
|
|
|
||||||||
Net amounts recognized in the consolidated balance sheets consist of:
|
|
|
|
|
|
|
|
||||||||
Other assets
|
$
|
31,419
|
|
|
$
|
—
|
|
|
$
|
26,591
|
|
|
$
|
—
|
|
Current liabilities
|
(6,752
|
)
|
|
—
|
|
|
(7,017
|
)
|
|
—
|
|
||||
Long-term liabilities
|
(176,672
|
)
|
|
(48,968
|
)
|
|
(183,248
|
)
|
|
(55,286
|
)
|
||||
Net liabilities recognized in the consolidated balance sheets
|
$
|
(152,005
|
)
|
|
$
|
(48,968
|
)
|
|
$
|
(163,674
|
)
|
|
$
|
(55,286
|
)
|
|
|
|
|
|
|
|
|
||||||||
Net amounts recognized in accumulated other comprehensive income consist of:
|
|
|
|
|
|
|
|
||||||||
Prior service cost
|
$
|
(278
|
)
|
|
$
|
—
|
|
|
$
|
(457
|
)
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||||
Actuarial assumptions as of the year-end measurement date:
|
|
|
|
|
|
|
|
||||||||
Discount rate
|
2.07
|
%
|
|
4.05
|
%
|
|
1.99
|
%
|
|
3.56
|
%
|
||||
Rate of compensation increase
|
3.48
|
%
|
|
None
|
|
|
3.50
|
%
|
|
None
|
|
|
December 30, 2018
|
|
December 31, 2017
|
|
January 1, 2017
|
||||||||||||
|
Non-U.S.
|
|
U.S.
|
|
Non-U.S.
|
|
U.S.
|
|
Non-U.S.
|
|
U.S.
|
||||||
Discount rate
|
1.99
|
%
|
|
3.56
|
%
|
|
2.06
|
%
|
|
4.06
|
%
|
|
2.88
|
%
|
|
4.25
|
%
|
Rate of compensation increase
|
3.50
|
%
|
|
None
|
|
|
3.64
|
%
|
|
None
|
|
|
3.26
|
%
|
|
None
|
|
Expected rate of return on assets
|
5.90
|
%
|
|
7.25
|
%
|
|
6.00
|
%
|
|
7.25
|
%
|
|
5.30
|
%
|
|
7.25
|
%
|
|
December 30,
2018 |
|
December 31,
2017 |
||||
|
(In thousands)
|
||||||
Pension Plans with Projected Benefit Obligations in Excess of Plan Assets
|
|
|
|
||||
Projected benefit obligations
|
$
|
183,424
|
|
|
$
|
190,265
|
|
Fair value of plan assets
|
—
|
|
|
—
|
|
||
|
|
|
|
||||
Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets
|
|
|
|
||||
Accumulated benefit obligations
|
$
|
180,560
|
|
|
$
|
187,329
|
|
Fair value of plan assets
|
—
|
|
|
—
|
|
|
Target Allocation
|
|
Percentage of Plan Assets at
|
||||||||||||||
|
December 29, 2019
|
|
December 30, 2018
|
|
December 31, 2017
|
||||||||||||
Asset Category
|
Non-U.S.
|
|
U.S.
|
|
Non-U.S.
|
|
U.S.
|
|
Non-U.S.
|
|
U.S.
|
||||||
Equity securities
|
45-55%
|
|
|
35-50%
|
|
|
48
|
%
|
|
39
|
%
|
|
51
|
%
|
|
41
|
%
|
Debt securities
|
45-55%
|
|
|
50-65%
|
|
|
51
|
%
|
|
61
|
%
|
|
49
|
%
|
|
59
|
%
|
Other
|
0-5%
|
|
|
0-10%
|
|
|
1
|
%
|
|
—
|
%
|
|
0
|
%
|
|
—
|
%
|
Total
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
|
|
Fair Value Measurements at December 31, 2017 Using:
|
||||||||||||
Total Carrying
Value at December 31, 2017 |
|
Quoted Prices in
Active Markets
(Level 1)
|
|
Significant Other
Observable Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
|||||||||
(In thousands)
|
|||||||||||||||
Cash
|
$
|
4,307
|
|
|
$
|
4,307
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Equity Securities:
|
|
|
|
|
|
|
|
||||||||
U.S. large-cap
|
30,008
|
|
|
30,008
|
|
|
—
|
|
|
—
|
|
||||
International large-cap value
|
32,613
|
|
|
32,613
|
|
|
—
|
|
|
—
|
|
||||
U.S. small-cap
|
2,104
|
|
|
2,104
|
|
|
—
|
|
|
—
|
|
||||
Emerging markets growth
|
14,348
|
|
|
14,348
|
|
|
—
|
|
|
—
|
|
||||
Equity index funds
|
90,838
|
|
|
—
|
|
|
90,838
|
|
|
—
|
|
||||
Domestic real estate funds
|
1,401
|
|
|
1,401
|
|
|
—
|
|
|
—
|
|
||||
Commodity funds
|
7,387
|
|
|
7,387
|
|
|
—
|
|
|
—
|
|
||||
Fixed income securities:
|
|
|
|
|
|
|
|
||||||||
Non-U.S. Treasury Securities
|
24,946
|
|
|
—
|
|
|
24,946
|
|
|
—
|
|
||||
Corporate and U.S. debt instruments
|
138,948
|
|
|
40,290
|
|
|
98,658
|
|
|
—
|
|
||||
Corporate bonds
|
27,571
|
|
|
—
|
|
|
27,571
|
|
|
—
|
|
||||
High yield bond funds
|
5,912
|
|
|
5,912
|
|
|
—
|
|
|
—
|
|
||||
Other types of investments:
|
|
|
|
|
|
|
|
||||||||
Multi-strategy hedge funds
|
16,789
|
|
|
—
|
|
|
—
|
|
|
16,789
|
|
||||
Non-U.S. government index linked bonds
|
35,991
|
|
|
—
|
|
|
35,991
|
|
|
—
|
|
||||
Total assets measured at fair value
|
$
|
433,163
|
|
|
$
|
138,370
|
|
|
$
|
278,004
|
|
|
$
|
16,789
|
|
|
Fair Value Measurements Using
Significant Unobservable Inputs
(Level 3):
|
||||||||||||||
Venture
Capital
Funds
|
|
Foreign
Real Estate
Funds
|
|
Multi-strategy
Hedge
Funds
|
|
Total
|
|||||||||
(In thousands)
|
|||||||||||||||
Balance at January 3, 2016
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
23,415
|
|
|
$
|
23,416
|
|
Realized losses
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||
Unrealized gains
|
—
|
|
|
—
|
|
|
375
|
|
|
375
|
|
||||
Balance at January 1, 2017
|
—
|
|
|
—
|
|
|
23,790
|
|
|
23,790
|
|
||||
Sales
|
—
|
|
|
—
|
|
|
(8,189
|
)
|
|
(8,189
|
)
|
||||
Realized gains
|
—
|
|
|
—
|
|
|
1,542
|
|
|
1,542
|
|
||||
Unrealized losses
|
—
|
|
|
—
|
|
|
(354
|
)
|
|
(354
|
)
|
||||
Balance at December 31, 2017
|
—
|
|
|
—
|
|
|
16,789
|
|
|
16,789
|
|
||||
Purchases
|
—
|
|
|
22,196
|
|
|
—
|
|
|
22,196
|
|
||||
Unrealized gains
|
—
|
|
|
—
|
|
|
145
|
|
|
145
|
|
||||
Balance at December 30, 2018
|
$
|
—
|
|
|
$
|
22,196
|
|
|
$
|
16,934
|
|
|
$
|
39,130
|
|
|
Non-U.S.
|
|
U.S.
|
||||
|
(In thousands)
|
||||||
2019
|
$
|
11,313
|
|
|
$
|
18,774
|
|
2020
|
11,654
|
|
|
18,948
|
|
||
2021
|
12,200
|
|
|
19,176
|
|
||
2022
|
12,267
|
|
|
19,353
|
|
||
2023
|
12,551
|
|
|
19,462
|
|
||
2024-2028
|
67,457
|
|
|
95,403
|
|
|
December 30,
2018 |
|
December 31,
2017 |
|
January 1,
2017 |
||||||
|
(In thousands)
|
||||||||||
Service cost
|
$
|
106
|
|
|
$
|
92
|
|
|
$
|
101
|
|
Interest cost
|
120
|
|
|
125
|
|
|
142
|
|
|||
Expected return on plan assets
|
(1,254
|
)
|
|
(1,114
|
)
|
|
(1,035
|
)
|
|||
Actuarial loss (gain)
|
1,621
|
|
|
(741
|
)
|
|
(539
|
)
|
|||
Net periodic postretirement medical benefit cost (credit)
|
$
|
593
|
|
|
$
|
(1,638
|
)
|
|
$
|
(1,331
|
)
|
|
December 30,
2018 |
|
December 31,
2017 |
||||
|
(In thousands)
|
||||||
Actuarial present value of benefit obligations:
|
|
|
|
||||
Retirees
|
$
|
688
|
|
|
$
|
804
|
|
Active employees eligible to retire
|
408
|
|
|
379
|
|
||
Other active employees
|
2,317
|
|
|
1,948
|
|
||
Accumulated benefit obligations at beginning of year
|
3,413
|
|
|
3,131
|
|
||
Service cost
|
106
|
|
|
92
|
|
||
Interest cost
|
120
|
|
|
125
|
|
||
Benefits paid
|
(117
|
)
|
|
(122
|
)
|
||
Actuarial (gain) loss
|
(611
|
)
|
|
187
|
|
||
Change in accumulated benefit obligations during the year
|
(502
|
)
|
|
282
|
|
||
Retirees
|
583
|
|
|
688
|
|
||
Active employees eligible to retire
|
362
|
|
|
408
|
|
||
Other active employees
|
1,966
|
|
|
2,317
|
|
||
Accumulated benefit obligations at end of year
|
$
|
2,911
|
|
|
$
|
3,413
|
|
Change in plan assets:
|
|
|
|
||||
Fair value of plan assets at beginning of year
|
$
|
17,374
|
|
|
$
|
15,453
|
|
Actual return on plan assets
|
(993
|
)
|
|
1,921
|
|
||
Benefits reimbursements paid
|
(102
|
)
|
|
—
|
|
||
Fair value of plan assets at end of year
|
$
|
16,279
|
|
|
$
|
17,374
|
|
Net assets recognized in the consolidated balance sheets
|
$
|
13,368
|
|
|
$
|
13,961
|
|
|
|
|
|
||||
Net amounts recognized in the consolidated balance sheets consist of:
|
|
|
|
||||
Other assets
|
$
|
13,368
|
|
|
$
|
13,961
|
|
|
|
|
|
||||
Net amounts recognized in accumulated other comprehensive income consist of:
|
|
|
|
||||
Prior service cost
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
||||
Actuarial assumptions as of the year-end measurement date:
|
|
|
|
||||
Discount rate
|
4.09
|
%
|
|
3.60
|
%
|
|
December 30,
2018 |
|
December 31,
2017 |
|
January 1,
2017 |
|||
Discount rate
|
3.60
|
%
|
|
4.11
|
%
|
|
4.34
|
%
|
Expected rate of return on assets
|
7.25
|
%
|
|
7.25
|
%
|
|
7.25
|
%
|
|
|
|
Fair Value Measurements at December 31, 2017 Using:
|
||||||||||||
Total Carrying
Value at December 31, 2017 |
|
Quoted Prices in
Active Markets
(Level 1)
|
|
Significant Other
Observable Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
|||||||||
(In thousands)
|
|||||||||||||||
Cash
|
$
|
268
|
|
|
$
|
268
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Equity securities:
|
|
|
|
|
|
|
|
||||||||
U.S. large-cap
|
2,057
|
|
|
2,057
|
|
|
—
|
|
|
—
|
|
||||
International large-cap value
|
2,236
|
|
|
2,236
|
|
|
—
|
|
|
—
|
|
||||
U.S. small mid-cap
|
144
|
|
|
144
|
|
|
—
|
|
|
—
|
|
||||
Emerging markets growth
|
984
|
|
|
984
|
|
|
—
|
|
|
—
|
|
||||
Domestic real estate funds
|
96
|
|
|
96
|
|
|
—
|
|
|
—
|
|
||||
Commodity funds
|
506
|
|
|
506
|
|
|
—
|
|
|
—
|
|
||||
Fixed income securities:
|
|
|
|
|
|
|
|
||||||||
Corporate debt instruments
|
9,526
|
|
|
2,762
|
|
|
6,764
|
|
|
—
|
|
||||
High yield bond funds
|
406
|
|
|
406
|
|
|
—
|
|
|
—
|
|
||||
Other types of investments:
|
|
|
|
|
|
|
|
||||||||
Multi-strategy hedge funds
|
1,151
|
|
|
—
|
|
|
—
|
|
|
1,151
|
|
||||
Total assets measured at fair value
|
$
|
17,374
|
|
|
$
|
9,459
|
|
|
$
|
6,764
|
|
|
$
|
1,151
|
|
|
Fair Value
Measurements
Using
Significant
Unobservable
Inputs
(Level 3):
|
||
Multi-strategy
Hedge
Funds
|
|||
(In thousands)
|
|||
Balance at January 3, 2016
|
$
|
1,374
|
|
Unrealized gains
|
134
|
|
|
Balance at January 1, 2017
|
1,508
|
|
|
Sales
|
(562
|
)
|
|
Realized gains
|
229
|
|
|
Unrealized losses
|
(24
|
)
|
|
Balance at December 31, 2017
|
1,151
|
|
|
Unrealized gains
|
25
|
|
|
Balance at December 30, 2018
|
$
|
1,176
|
|
Postretirement Medical Plan
|
|
||
|
(In thousands)
|
||
2019
|
$
|
136
|
|
2020
|
149
|
|
|
2021
|
168
|
|
|
2022
|
184
|
|
|
2023
|
194
|
|
|
2024-2028
|
1,050
|
|
Note 18:
|
Contingencies
|
Note 19:
|
Warranty Reserves
|
|
(In thousands)
|
||
Balance at January 3, 2016
|
$
|
9,843
|
|
Provision charged to income
|
14,901
|
|
|
Payments
|
(14,749
|
)
|
|
Adjustments to previously provided warranties, net
|
(850
|
)
|
|
Foreign currency translation and acquisitions
|
(133
|
)
|
|
Balance at January 1, 2017
|
9,012
|
|
|
Provision charged to income
|
13,700
|
|
|
Payments
|
(14,245
|
)
|
|
Adjustments to previously provided warranties, net
|
(815
|
)
|
|
Foreign currency translation and acquisitions
|
1,398
|
|
|
Balance at December 31, 2017
|
9,050
|
|
|
Provision charged to income
|
13,545
|
|
|
Payments
|
(13,775
|
)
|
|
Adjustments to previously provided warranties, net
|
(157
|
)
|
|
Foreign currency translation and acquisitions
|
(270
|
)
|
|
Balance at December 30, 2018
|
$
|
8,393
|
|
Note 20:
|
Stock Plans
|
|
December 30,
2018 |
|
December 31,
2017 |
|
January 1,
2017 |
||||||
|
(In thousands)
|
||||||||||
Cost of product and service revenue
|
$
|
1,466
|
|
|
$
|
1,254
|
|
|
$
|
1,031
|
|
Research and development expenses
|
1,359
|
|
|
1,389
|
|
|
902
|
|
|||
Selling, general and administrative expenses
|
25,942
|
|
|
22,778
|
|
|
15,225
|
|
|||
Total stock-based compensation expense
|
$
|
28,767
|
|
|
$
|
25,421
|
|
|
$
|
17,158
|
|
|
December 30,
2018 |
|
December 31,
2017 |
|
January 1,
2017 |
|||
Risk-free interest rate
|
3.0
|
%
|
|
2.0
|
%
|
|
1.7
|
%
|
Expected dividend yield
|
0.4
|
%
|
|
0.4
|
%
|
|
0.6
|
%
|
Expected lives
|
5 years
|
|
|
5 years
|
|
|
5 years
|
|
Expected stock volatility
|
20.7
|
%
|
|
22.4
|
%
|
|
25.2
|
%
|
|
December 30, 2018
|
|||||
|
Number
of
Shares
|
|
Weighted-
Average Exercise
Price
|
|||
|
(Shares in thousands)
|
|||||
Outstanding at beginning of year
|
2,154
|
|
|
$
|
42.77
|
|
Granted
|
364
|
|
|
77.84
|
|
|
Exercised
|
(709
|
)
|
|
35.02
|
|
|
Forfeited
|
(44
|
)
|
|
51.56
|
|
|
Outstanding at end of year
|
1,765
|
|
|
$
|
52.91
|
|
Exercisable at end of year
|
965
|
|
|
$
|
44.60
|
|
|
December 30, 2018
|
|||||
|
Number
of
Shares
|
|
Weighted-
Average
Grant-
Date Fair
Value
|
|||
|
(Shares in thousands)
|
|||||
Nonvested at beginning of year
|
496
|
|
|
$
|
50.30
|
|
Granted
|
214
|
|
|
76.00
|
|
|
Vested
|
(206
|
)
|
|
50.37
|
|
|
Forfeited
|
(39
|
)
|
|
55.73
|
|
|
Nonvested at end of year
|
465
|
|
|
$
|
61.72
|
|
Note 21:
|
Stockholders’ Equity
|
|
Foreign
Currency
Translation
Adjustment,
net of tax
|
|
Unrecognized
Prior Service
Costs, net of
tax
|
|
Unrealized
(Losses)
Gains on
Securities,
net of tax
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
||||||||
|
(In thousands)
|
||||||||||||||
Balance, January 3, 2016
|
$
|
(46,846
|
)
|
|
$
|
1,259
|
|
|
$
|
(369
|
)
|
|
$
|
(45,956
|
)
|
Current year change
|
(54,077
|
)
|
|
(860
|
)
|
|
32
|
|
|
(54,905
|
)
|
||||
Balance, January 1, 2017
|
(100,923
|
)
|
|
399
|
|
|
(337
|
)
|
|
(100,861
|
)
|
||||
Current year change
|
54,341
|
|
|
(77
|
)
|
|
79
|
|
|
54,343
|
|
||||
Balance, December 31, 2017
|
(46,582
|
)
|
|
322
|
|
|
(258
|
)
|
|
(46,518
|
)
|
||||
Current year change
|
(123,388
|
)
|
|
(77
|
)
|
|
(9
|
)
|
|
(123,474
|
)
|
||||
Reclassification to retained earnings upon adoption of ASU 2018-02 (see Note 1)
|
(6,489
|
)
|
|
—
|
|
|
—
|
|
|
(6,489
|
)
|
||||
Balance, December 30, 2018
|
$
|
(176,459
|
)
|
|
$
|
245
|
|
|
$
|
(267
|
)
|
|
$
|
(176,481
|
)
|
Note 22:
|
Derivatives and Hedging Activities
|
Note 23:
|
Fair Value Measurements
|
|
|
|
Fair Value Measurements at December 31, 2017 Using:
|
||||||||||||
|
Total Carrying
Value at December 31, 2017 |
|
Quoted Prices in
Active Markets
(Level 1)
|
|
Significant Other
Observable Inputs
(Level 2)
|
|
Significant
Unobservable Inputs
(Level 3)
|
||||||||
|
(In thousands)
|
||||||||||||||
Marketable securities
|
$
|
2,208
|
|
|
$
|
2,208
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Foreign exchange derivative assets
|
1,431
|
|
|
—
|
|
|
1,431
|
|
|
—
|
|
||||
Foreign exchange derivative liabilities, net
|
(23,638
|
)
|
|
—
|
|
|
(23,638
|
)
|
|
—
|
|
||||
Contingent consideration
|
(65,328
|
)
|
|
—
|
|
|
—
|
|
|
(65,328
|
)
|
|
(In thousands)
|
||
Balance at January 3, 2016
|
$
|
(57,350
|
)
|
Additions
|
—
|
|
|
Amounts paid and foreign currency translation
|
332
|
|
|
Reclassified to other current liabilities for milestone achieved
|
10,000
|
|
|
Change in fair value (included within selling, general and administrative expenses)
|
(16,183
|
)
|
|
Balance at January 1, 2017
|
(63,201
|
)
|
|
Additions
|
—
|
|
|
Amounts paid and foreign currency translation
|
34
|
|
|
Change in fair value (included within selling, general and administrative expenses)
|
(2,161
|
)
|
|
Balance at December 31, 2017
|
(65,328
|
)
|
|
Additions
|
(6,200
|
)
|
|
Amounts paid and foreign currency translation
|
16,507
|
|
|
Change in fair value (included within selling, general and administrative expenses)
|
(14,640
|
)
|
|
Balance at December 30, 2018
|
$
|
(69,661
|
)
|
Note 24:
|
Leases
|
Note 25:
|
Industry Segment and Geographic Area Information
|
•
|
Discovery & Analytical Solutions
. Provides products and services targeted towards the life sciences and applied markets.
|
•
|
Diagnostics
. Develops diagnostics, tools and applications focused on clinically-oriented customers, especially within the reproductive health, emerging market diagnostics and applied genomics markets. The Diagnostics segment serves the diagnostics market.
|
|
December 30,
2018 |
|
December 31,
2017 |
|
January 1,
2017 |
||||||
|
(In thousands)
|
||||||||||
Discovery & Analytical Solutions
|
|
|
|
|
|
||||||
Product revenue
|
$
|
1,010,899
|
|
|
$
|
941,328
|
|
|
$
|
934,098
|
|
Service revenue
|
682,312
|
|
|
637,131
|
|
|
578,886
|
|
|||
Total revenue
|
1,693,211
|
|
|
1,578,459
|
|
|
1,512,984
|
|
|||
Operating income from continuing operations
(1)
|
230,481
|
|
|
205,259
|
|
|
196,508
|
|
|||
Diagnostics
|
|
|
|
|
|
||||||
Product revenue
|
924,594
|
|
|
536,086
|
|
|
462,798
|
|
|||
Service revenue
|
160,191
|
|
|
142,437
|
|
|
139,735
|
|
|||
Total revenue
|
1,084,785
|
|
|
678,523
|
|
|
602,533
|
|
|||
Operating income from continuing operations
(2)
|
153,196
|
|
|
146,862
|
|
|
147,996
|
|
|||
Corporate
|
|
|
|
|
|
||||||
Operating loss from continuing operations
|
(59,793
|
)
|
|
(56,506
|
)
|
|
(49,922
|
)
|
|||
Continuing Operations
|
|
|
|
|
|
||||||
Product revenue
|
1,935,493
|
|
|
1,477,414
|
|
|
1,396,896
|
|
|||
Service revenue
|
842,503
|
|
|
779,568
|
|
|
718,621
|
|
|||
Total revenue
|
2,777,996
|
|
|
2,256,982
|
|
|
2,115,517
|
|
|||
Operating income from continuing operations
|
323,884
|
|
|
295,615
|
|
|
294,582
|
|
|||
Interest and other expense, net (see Note 7)
|
66,201
|
|
|
(1,103
|
)
|
|
50,514
|
|
|||
Income from continuing operations before income taxes
|
$
|
257,683
|
|
|
$
|
296,718
|
|
|
$
|
244,068
|
|
(1)
|
Legal costs for significant litigation matters in the Company's Discovery & Analytical Solutions segment were
$5.3 million
for
fiscal year 2018
and
$2.7 million
for fiscal year 2017.
|
(2)
|
Legal costs for a significant litigation matter in the Company's Diagnostics segment were
$0.2 million
for
fiscal year 2018
.
|
|
Depreciation and Amortization Expense
|
|
Capital Expenditures
|
||||||||||||||||||||
|
December 30,
2018 |
|
December 31,
2017 |
|
January 1,
2017 |
|
December 30,
2018 |
|
December 31,
2017 |
|
January 1,
2017 |
||||||||||||
|
(In thousands)
|
|
(In thousands)
|
||||||||||||||||||||
Discovery & Analytical Solutions
|
$
|
70,362
|
|
|
$
|
72,590
|
|
|
$
|
72,484
|
|
|
$
|
34,852
|
|
|
$
|
26,200
|
|
|
$
|
21,486
|
|
Diagnostics
|
107,434
|
|
|
31,204
|
|
|
25,339
|
|
|
54,737
|
|
|
11,262
|
|
|
8,556
|
|
||||||
Corporate
|
2,792
|
|
|
1,206
|
|
|
2,149
|
|
|
3,664
|
|
|
1,627
|
|
|
1,660
|
|
||||||
Continuing operations
|
$
|
180,588
|
|
|
$
|
105,000
|
|
|
$
|
99,972
|
|
|
$
|
93,253
|
|
|
$
|
39,089
|
|
|
$
|
31,702
|
|
Discontinued operations
|
$
|
—
|
|
|
$
|
929
|
|
|
$
|
6,266
|
|
|
$
|
—
|
|
|
$
|
182
|
|
|
$
|
1,302
|
|
|
Total Assets
|
||||||||||
|
December 30,
2018 |
|
December 31,
2017 |
|
January 1,
2017 |
||||||
|
(In thousands)
|
||||||||||
Discovery & Analytical Solutions
|
$
|
2,567,054
|
|
|
$
|
2,611,737
|
|
|
$
|
2,612,757
|
|
Diagnostics
|
3,358,964
|
|
|
3,447,437
|
|
|
1,505,381
|
|
|||
Corporate
|
49,504
|
|
|
32,289
|
|
|
31,171
|
|
|||
Current and long-term assets of discontinued operations
|
—
|
|
|
—
|
|
|
127,374
|
|
|||
Total assets
|
$
|
5,975,522
|
|
|
$
|
6,091,463
|
|
|
$
|
4,276,683
|
|
|
Revenue
|
||||||||||
|
December 30,
2018 |
|
December 31,
2017 |
|
January 1,
2017 |
||||||
|
(In thousands)
|
||||||||||
U.S.
|
$
|
906,398
|
|
|
$
|
837,018
|
|
|
$
|
842,364
|
|
International:
|
|
|
|
|
|
||||||
China
|
559,865
|
|
|
374,931
|
|
|
336,728
|
|
|||
United Kingdom
|
72,124
|
|
|
65,164
|
|
|
65,904
|
|
|||
Germany
|
142,411
|
|
|
91,669
|
|
|
89,839
|
|
|||
India
|
92,327
|
|
|
84,812
|
|
|
43,891
|
|
|||
Italy
|
95,908
|
|
|
77,477
|
|
|
70,948
|
|
|||
France
|
97,990
|
|
|
80,153
|
|
|
71,104
|
|
|||
Japan
|
79,238
|
|
|
76,322
|
|
|
65,980
|
|
|||
Other international
|
731,735
|
|
|
569,436
|
|
|
528,759
|
|
|||
Total international
|
1,871,598
|
|
|
1,419,964
|
|
|
1,273,153
|
|
|||
Total sales
|
$
|
2,777,996
|
|
|
$
|
2,256,982
|
|
|
$
|
2,115,517
|
|
|
Net Long-Lived Assets
|
||||||||||
|
December 30,
2018 |
|
December 31,
2017 |
|
January 1,
2017 |
||||||
|
(In thousands)
|
||||||||||
U.S.
|
$
|
201,649
|
|
|
$
|
210,116
|
|
|
$
|
182,186
|
|
International:
|
|
|
|
|
|
||||||
Germany
|
99,181
|
|
|
88,249
|
|
|
1,292
|
|
|||
China
|
61,261
|
|
|
64,815
|
|
|
36,458
|
|
|||
United Kingdom
|
33,429
|
|
|
28,028
|
|
|
14,638
|
|
|||
India
|
14,636
|
|
|
14,820
|
|
|
2,020
|
|
|||
Finland
|
16,211
|
|
|
14,764
|
|
|
12,295
|
|
|||
Italy
|
11,324
|
|
|
10,334
|
|
|
3,398
|
|
|||
Singapore
|
14,942
|
|
|
9,240
|
|
|
6,820
|
|
|||
Brazil
|
8,237
|
|
|
7,963
|
|
|
1,452
|
|
|||
Netherlands
|
3,750
|
|
|
4,281
|
|
|
4,162
|
|
|||
Sweden
|
3,038
|
|
|
3,869
|
|
|
2,645
|
|
|||
Other international
|
22,653
|
|
|
19,565
|
|
|
7,684
|
|
|||
Total international
|
288,662
|
|
|
265,928
|
|
|
92,864
|
|
|||
Total net long-lived assets
|
$
|
490,311
|
|
|
$
|
476,044
|
|
|
$
|
275,050
|
|
Note 26:
|
Quarterly Financial Information (Unaudited)
|
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
(1)
|
|
Year
|
||||||||||
|
(In thousands, except per share data)
|
||||||||||||||||||
December 30, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue
|
$
|
643,972
|
|
|
$
|
703,362
|
|
|
$
|
674,313
|
|
|
$
|
756,349
|
|
|
$
|
2,777,996
|
|
Gross profit
|
292,222
|
|
|
340,140
|
|
|
332,327
|
|
|
376,250
|
|
|
1,340,939
|
|
|||||
Restructuring and contract termination charges, net
|
6,578
|
|
|
—
|
|
|
6,508
|
|
|
(1,942
|
)
|
|
11,144
|
|
|||||
Operating income from continuing operations
|
39,935
|
|
|
88,064
|
|
|
80,202
|
|
|
115,683
|
|
|
323,884
|
|
|||||
Income from continuing operations before income taxes
|
28,505
|
|
|
71,708
|
|
|
78,041
|
|
|
79,429
|
|
|
257,683
|
|
|||||
Income from continuing operations
|
26,035
|
|
|
64,673
|
|
|
75,445
|
|
|
71,322
|
|
|
237,475
|
|
|||||
Loss (income) from discontinued operations and dispositions
|
(11
|
)
|
|
(610
|
)
|
|
1,103
|
|
|
(30
|
)
|
|
452
|
|
|||||
Net income
|
26,024
|
|
|
64,063
|
|
|
76,548
|
|
|
71,292
|
|
|
237,927
|
|
|||||
Basic earnings per share:
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations
|
$
|
0.24
|
|
|
$
|
0.59
|
|
|
$
|
0.68
|
|
|
$
|
0.64
|
|
|
$
|
2.15
|
|
Income (loss) from discontinued operations and dispositions
|
—
|
|
|
(0.01
|
)
|
|
0.01
|
|
|
—
|
|
|
—
|
|
|||||
Net income
|
0.24
|
|
|
0.58
|
|
|
0.69
|
|
|
0.64
|
|
|
2.15
|
|
|||||
Diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations
|
$
|
0.23
|
|
|
$
|
0.58
|
|
|
$
|
0.68
|
|
|
$
|
0.64
|
|
|
$
|
2.13
|
|
Income (loss) from discontinued operations and dispositions
|
—
|
|
|
(0.01
|
)
|
|
0.01
|
|
|
—
|
|
|
—
|
|
|||||
Net income
|
0.23
|
|
|
0.57
|
|
|
0.69
|
|
|
0.64
|
|
|
2.13
|
|
|||||
Cash dividends declared per common share
|
$
|
0.07
|
|
|
$
|
0.07
|
|
|
$
|
0.07
|
|
|
$
|
0.07
|
|
|
$
|
0.28
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue
|
$
|
514,115
|
|
|
$
|
546,962
|
|
|
$
|
554,275
|
|
|
$
|
641,630
|
|
|
$
|
2,256,982
|
|
Gross profit
|
239,756
|
|
|
257,602
|
|
|
268,967
|
|
|
307,429
|
|
|
1,073,754
|
|
|||||
Restructuring and contract termination charges, net
|
9,651
|
|
|
—
|
|
|
3,269
|
|
|
(263
|
)
|
|
12,657
|
|
|||||
Operating income from continuing operations
|
49,811
|
|
|
74,183
|
|
|
78,038
|
|
|
93,583
|
|
|
295,615
|
|
|||||
Income from continuing operations before income taxes
|
39,983
|
|
|
70,792
|
|
|
105,054
|
|
|
80,889
|
|
|
296,718
|
|
|||||
Income (loss) from continuing operations
|
36,062
|
|
|
62,726
|
|
|
96,546
|
|
|
(38,444
|
)
|
|
156,890
|
|
|||||
Income (loss) from discontinued operations and dispositions
|
2,541
|
|
|
141,343
|
|
|
(5,468
|
)
|
|
(2,673
|
)
|
|
135,743
|
|
|||||
Net income (loss)
|
38,603
|
|
|
204,069
|
|
|
91,078
|
|
|
(41,117
|
)
|
|
292,633
|
|
|||||
Basic earnings per share:
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) from continuing operations
|
$
|
0.33
|
|
|
$
|
0.57
|
|
|
$
|
0.88
|
|
|
$
|
(0.35
|
)
|
|
$
|
1.43
|
|
Income (loss) from discontinued operations and dispositions
|
0.02
|
|
|
1.29
|
|
|
(0.05
|
)
|
|
(0.02
|
)
|
|
1.24
|
|
|||||
Net income (loss)
|
0.35
|
|
|
1.86
|
|
|
0.83
|
|
|
(0.37
|
)
|
|
2.67
|
|
|||||
Diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) continuing operations
|
$
|
0.33
|
|
|
$
|
0.57
|
|
|
$
|
0.87
|
|
|
$
|
(0.35
|
)
|
|
$
|
1.42
|
|
Income (loss) from discontinued operations and dispositions
|
0.02
|
|
|
1.28
|
|
|
(0.05
|
)
|
|
(0.02
|
)
|
|
1.22
|
|
|||||
Net income (loss)
|
0.35
|
|
|
1.84
|
|
|
0.82
|
|
|
(0.37
|
)
|
|
2.64
|
|
|||||
Cash dividends declared per common share
|
$
|
0.07
|
|
|
$
|
0.07
|
|
|
$
|
0.07
|
|
|
$
|
0.07
|
|
|
$
|
0.28
|
|
(1)
|
The fourth quarter of
fiscal year 2018
includes a pre-tax
loss
of
$21.4 million
as a result of the mark-to-market adjustment on postretirement benefit plans. The fourth quarter of
fiscal year 2017
includes a pre-tax
gain
of
$2.1 million
as a result of the mark-to-market adjustment on postretirement benefit plans. See Note 1 for a discussion of this accounting policy.
|
Item 9.
|
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
|
Item 9A.
|
Controls and Procedures
|
•
|
Added new controls related to gathering the information and evaluating the analyses used in the development of disclosures required before the standard's effective date.
|
•
|
Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the company;
|
•
|
Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and
|
•
|
Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company’s assets that could have a material effect on the financial statements.
|
•
|
Added new controls related to gathering the information and evaluating the analyses used in the development of disclosures required before the standard's effective date.
|
Item 9B.
|
Other Information
|
Item 10.
|
Directors, Executive Officers and Corporate Governance
|
Item 11.
|
Executive Compensation
|
Item 12.
|
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
|
Item 13.
|
Certain Relationships and Related Transactions, and Director Independence
|
Item 14.
|
Principal Accountant Fees and Services
|
Item 15.
|
Exhibits and Financial Statement Schedules
|
Exhibit No.
|
|
Exhibit Title
|
|||
2.1
(1)
|
|
|
|||
|
|
|
|||
2.2
|
|
|
|||
|
|
|
|||
2.3
(1)
|
|
|
|||
|
|
|
|||
2.4
(1)
|
|
|
|||
|
|
|
|||
2.5
(1)
|
|
Amendment Agreement, dated December 19, 2017, to the Share Sale and Transfer Agreement, dated as of June 16, 2017, by and among PerkinElmer, Inc., Prof. Dr. Winfried Stöcker, Stöcker Vermögensverwaltungsgesellschaft mbH & Co. KG and PerkinElmer Germany Diagnostics GmbH filed with the Commission on February 27, 2018 as Exhibit 2.5 to our annual report on Form 10-K (file No. 001-05075) and herein incorporated by reference.
|
|||
|
|
|
|||
3.1
|
|
|
|||
|
|
|
Exhibit No.
|
|
Exhibit Title
|
|||
3.2
|
|
|
|
|
|
|
|
|
|||
4.1
|
|
|
|||
|
|
|
|||
4.2
|
|
|
|||
|
|
|
|||
4.3
|
|
|
|||
|
|
|
|||
4.4
|
|
|
|||
|
|
|
|||
4.5
|
|
|
|||
|
|
|
|||
4.6
|
|
|
|||
|
|
|
|||
4.7
|
|
|
|||
|
|
|
|||
4.8
|
|
|
|||
|
|
|
|||
10.1
|
|
|
|||
|
|
|
|||
10.2
|
|
|
|||
|
|
|
|||
10.3
|
|
|
|||
|
|
|
|||
10.4*
|
|
Employment Contracts:
|
|||
|
|
|
|||
|
|
||||
|
|
|
|||
|
|
||||
|
|
|
Exhibit No.
|
|
Exhibit Title
|
|||
|
|
||||
|
|
|
|||
|
|
||||
|
|
|
|||
|
|
Executive Officer
|
Date
|
||
|
|
Joel S. Goldberg
Frank A. Wilson |
December 3, 2010
December 21, 2010 |
|
|
|
|
|
|||
|
|
||||
|
|
|
|||
|
|
||||
|
|
|
|||
|
|
||||
|
|
|
|||
|
|
||||
|
|
|
|||
|
|
||||
|
|
|
|||
|
|
||||
|
|
|
|||
|
|
|
|||
|
|
|
|||
10.5*
|
|
|
|||
|
|
|
|||
10.6*
|
|
|
|||
|
|
|
|||
10.7*
|
|
|
|||
|
|
|
|||
10.8*
|
|
|
|||
|
|
|
|||
10.9*
|
|
|
|||
|
|
|
|||
10.10*
|
|
|
|||
|
|
|
|||
10.11*
|
|
|
|||
|
|
|
|||
10.12*
|
|
||||
|
|
|
Exhibit No.
|
|
Exhibit Title
|
|||
10.13*
|
|
||||
|
|
|
|||
10.14*
|
|
||||
|
|
|
|||
10.15*
|
|
||||
|
|
|
|||
10.16*
|
|
||||
|
|
|
|||
10.17*
|
|
||||
|
|
|
|||
10.18*
|
|
||||
|
|
|
|||
10.19*
|
|
||||
|
|
|
|||
10.20*
|
|
||||
|
|
|
|||
10.21*
|
|
||||
|
|
|
|||
10.22*
|
|
||||
|
|
|
|||
10.23*
|
|
||||
|
|
|
|||
10.24*
|
|
||||
|
|
|
|||
10.25*
|
|
||||
|
|
|
|||
10.26*
|
|
||||
|
|
|
|||
10.27*
|
|
||||
|
|
|
|||
21
|
|
||||
|
|
|
|||
23
|
|
||||
|
|
|
|||
31.1
|
|
||||
|
|
|
|||
31.2
|
|
||||
|
|
|
|||
32.1
|
|
||||
|
|
|
Exhibit No.
|
|
Exhibit Title
|
|||
101.INS
|
|
XBRL Instance Document.
|
|||
|
|
|
|||
101.SCH
|
|
XBRL Taxonomy Extension Schema Document.
|
|||
|
|
|
|||
101.CAL
|
|
XBRL Calculation Linkbase Document.
|
|||
|
|
|
|||
101.DEF
|
|
XBRL Definition Linkbase Document.
|
|||
|
|
|
|||
101.LAB
|
|
XBRL Labels Linkbase Document.
|
|||
|
|
|
|||
101.PRE
|
|
XBRL Presentation Linkbase Document.
|
(1)
|
The exhibits and schedules to this agreement have been omitted from this filing pursuant to Item 601(b)(2) of Regulation S-K. The registrant agrees to furnish copies of any of such exhibits or schedules to the SEC upon request.
|
*
|
Management contract or compensation plan or arrangement required to be filed as an exhibit pursuant to Item 15(b) of Form 10-K.
|
Description
|
|
Balance at
Beginning of
Year
|
|
Provisions
|
|
Charges/
Write-
offs
|
|
Other
(1)
|
|
Balance
at End
of Year
|
||||||||||
|
|
(In thousands)
|
||||||||||||||||||
Reserve for doubtful accounts:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Year ended January 1, 2017
|
|
$
|
29,866
|
|
|
$
|
5,346
|
|
|
$
|
(5,499
|
)
|
|
$
|
(501
|
)
|
|
$
|
29,212
|
|
Year ended December 31, 2017
|
|
29,212
|
|
|
2,038
|
|
|
(1,900
|
)
|
|
1,931
|
|
|
31,281
|
|
|||||
Year ended December 30, 2018
|
|
31,281
|
|
|
2,503
|
|
|
(2,295
|
)
|
|
(899
|
)
|
|
30,590
|
|
(1)
|
Other amounts primarily relate to the impact of acquisitions, discontinued operations and foreign exchange movements.
|
Item 16.
|
Form 10-K Summary
|
|
Signature
|
|
PERKINELMER, INC.
Title
|
|
Date
|
|
|
|
|
|
|
|
|
|
|
|
|
By:
|
/
S
/ R
OBERT
F. F
RIEL
|
|
Chairman and Chief Executive Officer
|
|
February 26, 2019
|
|
Robert F. Friel
|
|
(Principal Executive Officer)
|
|
|
|
|
|
|
|
|
By:
|
/
S
/ J
AMES
M. M
OCK
|
|
Sr. Vice President and
|
|
February 26, 2019
|
|
James M. Mock
|
|
Chief Financial Officer
(Principal Financial Officer)
|
|
|
|
|
|
|
|
|
By:
|
/
S
/ A
NDREW
O
KUN
|
|
Vice President and
|
|
February 26, 2019
|
|
Andrew Okun
|
|
Chief Accounting Officer
(Principal Accounting Officer)
|
|
|
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
|
|
|
|
|
|
|
By:
|
/
S
/ R
OBERT
F. F
RIEL
|
|
Chairman and Chief Executive Officer
|
|
February 26, 2019
|
|
Robert F. Friel
|
|
(Principal Executive Officer)
|
|
|
|
|
|
|
|
|
By:
|
/
S
/ J
AMES
M. M
OCK
|
|
Sr. Vice President and
|
|
February 26, 2019
|
|
James M. Mock
|
|
Chief Financial Officer
(Principal Financial Officer)
|
|
|
|
|
|
|
|
|
By:
|
/
S
/ A
NDREW
O
KUN
|
|
Vice President and
|
|
February 26, 2019
|
|
Andrew Okun
|
|
Chief Accounting Officer
(Principal Accounting Officer)
|
|
|
|
|
|
|
|
|
By:
|
/
S
/ P
ETER
B
ARRETT
|
|
Director
|
|
February 26, 2019
|
|
Peter Barrett
|
|
|
|
|
|
|
|
|
|
|
By:
|
/
S
/ S
AMUEL
R. C
HAPIN
|
|
Director
|
|
February 26, 2019
|
|
Samuel R. Chapin
|
|
|
|
|
|
|
|
|
|
|
By:
|
/
S
/ S
YLVIE
G
RÉGOIRE, PharmD
|
|
Director
|
|
February 26, 2019
|
|
Sylvie Grégoire, PharmD
|
|
|
|
|
|
|
|
|
|
|
By:
|
/
S
/ N
ICHOLAS
A. L
OPARDO
|
|
Director
|
|
February 26, 2019
|
|
Nicholas A. Lopardo
|
|
|
|
|
|
|
|
|
|
|
By:
|
/
S
/ A
LEXIS
P. M
ICHAS
|
|
Director
|
|
February 26, 2019
|
|
Alexis P. Michas
|
|
|
|
|
|
|
|
|
|
|
By:
|
/
S
/ P
ATRICK
J. S
ULLIVAN
|
|
Director
|
|
February 26, 2019
|
|
Patrick J. Sullivan
|
|
|
|
|
|
|
|
|
|
|
By:
|
/
S
/ F
RANK
W
ITNEY, PhD
|
|
Director
|
|
February 26, 2019
|
|
Frank Witney, PhD
|
|
|
|
|
|
|
|
|
|
|
By:
|
/
S
/ P
ASCALE
W
ITZ
|
|
Director
|
|
February 26, 2019
|
|
Pascale Witz
|
|
|
|
|
ARTICLE I
|
DEFINITIONS 2
|
1.1
|
“Account” 2
|
1.2
|
“Actual Deferral Percentage” 2
|
1.3
|
“Adjustment Factor” 2
|
1.4
|
“Administrator” 2
|
1.5
|
“After-Tax Contribution Account” 2
|
1.6
|
“After-Tax Contributions” 2
|
1.7
|
“Annual Addition” 2
|
1.8
|
“Authorized Leave of Absence” 2
|
1.9
|
“Average Actual Deferral Percentage” 2
|
1.10
|
“Average Contribution Percentage” 2
|
1.11
|
“Before-Tax Contribution Account” 2
|
1.12
|
“Before-Tax Contributions” 2
|
1.13
|
“Beneficiary” 3
|
1.14
|
“Board of Directors” 3
|
1.15
|
“Code” 3
|
1.16
|
“Committee” 3
|
1.17
|
“Company" 3
|
1.18
|
“Company Stock” 3
|
1.19
|
“Company Stock Fund” 3
|
1.20
|
“Compensation” 3
|
1.21
|
“Computation Period” 3
|
1.22
|
“Contribution Percentage” 4
|
1.23
|
“Disability” 4
|
1.24
|
“Early Retirement Date” 4
|
1.25
|
“Effective Date” 4
|
1.26
|
“Eligible Employee” 4
|
1.27
|
“Employee” 4
|
1.28
|
“Employer” 4
|
1.29
|
“Employment Commencement Date” 5
|
1.30
|
“Entry Date” 5
|
1.31
|
“ERISA” 5
|
1.32
|
“Excess Aggregate Contributions” 5
|
1.33
|
“Excess Contributions” 5
|
1.34
|
“Excess Deferrals” 5
|
1.35
|
“Fund” 5
|
1.36
|
“Hardship” 5
|
1.37
|
“Highly Compensated Employee” 6
|
1.38
|
“Hour of Service” 6
|
1.39
|
“Limitation Year” 7
|
1.40
|
“Matched Contributions” 7
|
1.41
|
“Matching Contribution Account” 7
|
1.42
|
“Matching Contributions” 7
|
1.43
|
“Nonhighly Compensated Employee” 7
|
1.44
|
“Normal Retirement Age” 8
|
1.45
|
“Normal Retirement Date” 8
|
1.46
|
“One-Year Break in Service” 8
|
1.47
|
“Participant" 8
|
1.48
|
“Plan” 8
|
1.49
|
“Plan Year” 8
|
1.50
|
“Reemployment Commencement Date” 8
|
1.51
|
“Regulations” 8
|
1.52
|
“Rollover Account” 8
|
1.53
|
“Rollover Contribution” 8
|
1.54
|
“Severance from Employment” 8
|
1.55
|
“Spouse” 9
|
1.56
|
“Trust Agreement” 9
|
1.57
|
“Trust Fund” 9
|
1.58
|
“Trustee” 9
|
1.59
|
“Unmatched Contributions” 9
|
1.60
|
“Valuation Date” 9
|
1.61
|
“Year of Service” 9
|
ARTICLE II
|
ELIGIBILITY AND PARTICIPATION 9
|
2.1
|
Eligibility 9
|
2.2
|
Information 10
|
2.3
|
Eligibility upon Reemployment 10
|
2.4
|
Transferred Employees 11
|
ARTICLE III
|
CONTRIBUTIONS AND ALLOCATIONS 11
|
3.1
|
Before-Tax Contributions 11
|
3.2
|
After-Tax Contributions 12
|
3.3
|
Matching Contributions 12
|
3.4
|
Rollover Contributions 14
|
3.5
|
Changes in Contributions 14
|
3.6
|
Suspension and Resumption of Contributions 15
|
3.7
|
Actual Deferral Percentage Test 15
|
3.8
|
Reductions during Plan Year 16
|
3.9
|
Return of Excess Contributions after End of Plan Year 16
|
3.10
|
Distribution of Excess Deferrals 17
|
3.11
|
Contribution Percentage Test 18
|
3.12
|
Return of Excess Aggregate Contributions 19
|
3.13
|
Maximum Annual Additions 20
|
3.14
|
Return of Contributions to Employer 21
|
ARTICLE IV
|
ROTH ELECTIVE DEFERRALS 21
|
4.1
|
General Application 21
|
4.2
|
Separate Accounting 22
|
4.3
|
Direct Rollovers 22
|
4.4
|
Correction of Excess Contributions 23
|
4.5
|
Definition of Roth Elective Deferrals 23
|
ARTICLE V
|
MAINTENANCE AND VALUATION OF ACCOUNTS 23
|
5.1
|
Maintenance of Accounts 23
|
5.2
|
Valuation of Accounts 23
|
5.3
|
Account Statements 24
|
ARTICLE VI
|
INVESTMENT OF CONTRIBUTIONS 24
|
6.1
|
Investment Funds 24
|
6.2
|
Investment of Participant’s Accounts 24
|
6.3
|
Responsibility for Investments 25
|
6.4
|
Changing Investment Elections - Future Contributions 25
|
6.5
|
Transfer among Funds 25
|
6.6
|
Special Rules Concerning the Company Stock Fund 25
|
ARTICLE VII
|
VESTING 27
|
7.1
|
Vesting in Before-Tax Contribution, After-Tax Contribution and Rollover Accounts 27
|
7.2
|
Vesting in Matching Contribution Account 27
|
7.3
|
Forfeiture of Nonvested Interest 28
|
7.4
|
Restoration of Forfeitures and Service 28
|
ARTICLE VIII
|
WITHDRAWALS AND LOANS DURING EMPLOYMENT 29
|
8.1
|
After-Tax Contribution Account Withdrawals 29
|
8.2
|
Rollover Contribution Account Withdrawal 29
|
8.3
|
Age 59½ Withdrawals 29
|
8.4
|
Age 70½ Withdrawals 30
|
8.5
|
Hardship Withdrawals 30
|
8.6
|
Loans to Participants 31
|
ARTICLE IX
|
DISTRIBUTIONS UPON SEVERANCE FROM EMPLOYMENT 33
|
9.1
|
Eligibility for Distribution 33
|
9.2
|
Form of Payment 33
|
9.3
|
Timing of Payment 33
|
9.4
|
Special Timing Rules 34
|
9.5
|
Proof of Death 34
|
9.6
|
Direct Rollovers 34
|
9.7
|
Minimum Required Distributions 35
|
ARTICLE X
|
TOP HEAVY PROVISIONS 39
|
10.1
|
When Applicable 39
|
10.2
|
Top Heavy Determination 40
|
10.3
|
Minimum Contribution 40
|
10.4
|
Vesting Rules 41
|
10.5
|
Dual Plan Special Limitations 41
|
10.6
|
Aggregation Groups 42
|
10.7
|
Key Employee Defined 42
|
10.8
|
Determination Date Defined 42
|
10.9
|
Matching Contributions 42
|
10.10
|
Contributions under Other Plans 43
|
ARTICLE XI
|
ADMINISTRATION OF PLAN 43
|
11.1
|
Records and Notices 43
|
11.2
|
Powers and Duties 43
|
11.3
|
Claims Procedure 44
|
ARTICLE XII
|
MANAGEMENT OF FUNDS 45
|
12.1
|
Appointment of Trustee 45
|
12.2
|
Investment of Trust Fund by Trustees 45
|
12.3
|
Investment of Trust Fund by Investment Manager 46
|
12.4
|
Exclusive Benefit Rule 46
|
12.5
|
Medium of Distribution 46
|
ARTICLE XIII
|
AMENDMENT, MERGER, TERMINATION OF PLAN 47
|
13.1
|
Amendment of Plan 47
|
13.2
|
Merger or Consolidation 47
|
13.3
|
Additional Participating Employers 47
|
13.4
|
Termination of Plan 48
|
ARTICLE XIV
|
MISCELLANEOUS PROVISIONS 48
|
14.1
|
Limitation of Liability 48
|
14.2
|
Indemnification 48
|
14.3
|
Compliance with ERISA 49
|
14.4
|
Nonalienation of Benefits 49
|
14.5
|
Employment not Guaranteed by Plan 49
|
14.6
|
Form of Communication 49
|
14.7
|
Facility of Payment 50
|
14.8
|
Service in More Than One Fiduciary Capacity 50
|
14.9
|
Binding Effect of Company’s Actions 50
|
14.10
|
Governing Law 50
|
14.11
|
Military Service 50
|
APPENDIX A
|
ADDITIONAL RULES FOR PUERTO RICAN PARTICIPANTS A-1
|
APPENDIX B
|
PREPARTICIPATION SERVICE B-1
|
APPENDIX C
|
EFFECTIVE DATE OF ADOPTION OF 5% MATCHING
|
APPENDIX D
|
FLUID SCIENCES PARTICIPANTS D-1
|
APPENDIX E
|
IDS PARTICIPANTS E-1
|
Age
|
Year of Birth
|
65
|
1937 and earlier
|
65 plus 2 months/year
|
1938 – 1942
|
66
|
1943 – 1954
|
66 plus 2 months/year
|
1955 – 1959
|
67
|
1960 and later
|
Years of Service
|
Vested Percentage
|
Less than 3
|
0
|
3 or more
|
100
|
Years of Service
|
Vested Percentage
|
Less than 2
|
0
|
2 but less than 3
|
20
|
3 but less than 4
|
40
|
4 but less than 5
|
60
|
5 but less than 6
|
80
|
6 or more
|
100
|
By:
|
/s/ John R. Letcher
John R. Letcher Its Senior Vice President, Human Resources |
ENTITY
|
DATE
|
Packard Bioscience Company
|
November 13, 2001
|
Analytical Automation Specialists, Inc.
|
April 2, 2001
|
Lumen Technologies, Inc.
|
January 31, 2000
|
Wolfram, Inc.
|
January 31, 2000
|
Voltarc Technologies, Inc.
|
January 31, 2000
|
ILC Technology, Inc.
|
January 31, 2000
|
ORC Technologies
|
January 31, 2000
|
Life Sciences Divisions 154 and 179
All Other Life Sciences SBU
|
February 1, 2001
January 1, 2003
|
Corporate (SBU 011)
Analytical Instruments (SBU 193 and 229)
|
January 1, 2003
January 1, 2003
|
OptoElectronics (generally)
OptoElectronics (grandfathered ERP participants)
|
January 1, 2009
January 31, 2011 (pro rated)
|
Division
|
Location Number(s)
|
Transaction Date
|
Industrial Technologies
|
San Antonio – 043
|
November 9, 2005
|
Aerospace
|
Beltsville – 075
Phelps – 025 |
December 6, 2005
December 6, 2005 |
|
Warwick – 031,040
|
December 6, 2005
|
Semiconductor
|
Daytona
|
February 28, 2006
|
PerkinElmer, Inc.
|
04-2052042
|
PerkinElmer Holdings, Inc.
|
04-2436772
|
PerkinElmer Informatics, Inc.
|
04-2897700
|
PerkinElmer Health Sciences, Inc.
|
04-3361624
|
Geospiza, Inc.
|
91-1894564
|
Novascreen Biosciences Corp.3e
|
86-0593048
|
Caliper Life Sciences, Inc.
|
33-0675808
|
PerkinElmer Genetics, Inc.
|
25-1645804
|
ViaCord, LLC
|
04-3201419
|
Bioo Scientific Corp.
|
87-0781699
|
Control Development, Inc.
|
[35-1826939] [Effective March 15, 2018]
|
PerkinElmer, Inc.
|
04-2052042
|
PerkinElmer Holdings, Inc.
|
04-2436772
|
PerkinElmer Informatics, Inc.
|
04-2897700
|
PerkinElmer Health Sciences, Inc.
|
04-3361624
|
Novascreen Biosciences Corp.
|
86-0593048
|
Caliper Life Sciences, Inc.
|
33-0675808
|
PerkinElmer Genetics, Inc.
|
25-1645804
|
ViaCord, LLC
|
04-3201419
|
Bioo Scientific Corp.
|
87-0781699
|
Control Development, Inc.
|
35-1826939
|
EUROIMMUN US Incorporated
|
20-1507364
|
1.1
|
Plan Name. I-1
|
1.2
|
Qualification of Plan. I-1
|
1.3
|
Purpose of Restatement. I-1
|
1.4
|
Application. I-1
|
1.5
|
Plan Frozen. I-1
|
2.1
|
“Accrued Benefit” II-1
|
2.2
|
“Active Service” II-1
|
2.3
|
“Actuarial Equivalent” II-1
|
2.4
|
“Actuary” II-2
|
2.5
|
“Administrative Committee” II-2
|
2.6
|
“Affiliate” II-2
|
2.7
|
“Alternate Payee” II-3
|
2.8
|
“Applicable Freeze Date” II-3
|
2.9
|
“Authorized Leave of Absence” II-3
|
2.10
|
“Average Earnings” II-3
|
2.11
|
“Beneficiary” II-4
|
2.12
|
“Board” II-4
|
2.13
|
“Break-in-Service” II-4
|
2.14
|
“Code” II-4
|
2.15
|
“Company” II-4
|
2.16
|
“Credited Service” II-4
|
2.17
|
“Defined Benefit Dollar Limitation” II-5
|
2.18
|
“Disabled Participant” II-5
|
2.19
|
“Early Retirement Date” II-5
|
2.20
|
“Earnings” II-5
|
2.21
|
“Effective Date” II-6
|
2.22
|
“Eligible Spouse” II-6
|
2.23
|
“Employee” II-6
|
2.24
|
“Employer” II-7
|
2.25
|
“Employment” II-7
|
2.26
|
“ERISA” II-7
|
2.27
|
“Freeze Date” II-7
|
2.28
|
“Hour of Service” II-7
|
2.29
|
“IDS” and “IDS Final Employment Date” II-9
|
2.30
|
“Investment Manager” II-9
|
2.31
|
“Joint Annuitant” II-9
|
2.32
|
“Maximum Permissible Benefit” II-9
|
2.33
|
“Named Fiduciary” II-11
|
2.34
|
“Normal Retirement Age” II-11
|
2.35
|
“Normal Retirement Date” II-11
|
2.36
|
“Participant” II-11
|
2.37
|
“Plan” II-11
|
2.38
|
“Plan Year” II-11
|
2.39
|
“Predecessor Corporation” II-12
|
2.40
|
“Qualified Domestic Relations Order” II-12
|
2.41
|
“Rehired Participant” II-12
|
2.42
|
“Social Security Tax Base” II-12
|
2.43
|
“Subsidiary” II-12
|
2.44
|
“Surviving Spouse Option” II-12
|
2.45
|
“Transaction Date” II-12
|
2.46
|
“Transferred Participant” II-12
|
2.47
|
“Trust Fund” II-13
|
2.48
|
“Trustees” II-13
|
2.49
|
“Year” II-13
|
2.50
|
“Year of Eligibility Service” II-13
|
2.51
|
“Year of Service” II-13
|
3.1
|
Eligibility to Participate. III-1
|
3.2
|
Former Participant. III-1
|
3.3
|
Plan Closed. III-1
|
3.4
|
Belfab. III-1
|
3.5
|
Fluid Sciences Participants. III-1
|
3.6
|
Participation by Former Missouri Metals Employees. III-2
|
3.7
|
Participation by Former Shop Union Employees. III-2
|
3.8
|
Exclusions. III-2
|
3.9
|
IDS Participants. III-3
|
4.1
|
General. IV-1
|
4.2
|
Normal Retirement Income. IV-1
|
4.3
|
Early Retirement Income. IV-3
|
4.4
|
Postponed Retirement Income. IV-4
|
4.5
|
Termination Prior to Retirement. IV-5
|
4.6
|
Disability Retirement Income. IV-5
|
4.7
|
Determination of Accrued Benefit for Certain Participants. IV-6
|
5.1
|
General. V-1
|
5.2
|
Determination of Years of Service. V-1
|
5.3
|
Rehired Participant. V-3
|
6.1
|
Defined Benefit Limitations. VI-1
|
6.2
|
Definitions. VI-2
|
6.3
|
Funding-Based Limits. VI-17
|
7.1
|
Determination of Credited Service. VII-1
|
8.1
|
Normal Form of Payment. VIII-1
|
8.2
|
Optional Forms of Payment. VIII-4
|
8.3
|
Election Procedure. VIII-5
|
8.4
|
Minimum Required Distributions. VIII-6
|
8.5
|
Suspension of Benefits. VIII-13
|
8.6
|
Direct Rollovers. VIII-15
|
9.1
|
Administrative Committee. IX-1
|
9.2
|
Agents of the Administrative Committee. IX-1
|
9.3
|
Procedures. IX-1
|
9.4
|
Claims Procedures. IX-1
|
9.5
|
Benefit Payments from Trust. IX-3
|
9.6
|
Payment to Incompetents. IX-3
|
9.7
|
Powers of Administrative Committee. IX-3
|
9.8
|
Special Powers. IX-3
|
9.9
|
Use of Outside Specialists. IX-4
|
9.10
|
Power of Named Fiduciaries. IX-5
|
9.11
|
Indemnification. IX-5
|
10.1
|
Trust. X-1
|
10.2
|
Return of Contributions. X-1
|
10.3
|
Contributions. X-1
|
11.1
|
Establishment of Retiree Health Plan. XI-1
|
11.2
|
Definitions. XI-2
|
11.3
|
Election to Continue Coverage. XI-3
|
11.4
|
Funding Method and Policy. XI-3
|
11.5
|
Subordination to Retirement Benefits. XI-3
|
11.6
|
Benefits Provision. XI-4
|
11.7
|
Coordination with Retiree Health Plan. XI-4
|
11.8
|
Reservation of the Right to Terminate Benefits. XI-4
|
11.9
|
Disallowance of Deduction. XI-4
|
12.1
|
Right to Amend. XII-1
|
12.2
|
Right to Suspend. XII-1
|
12.3
|
Distribution of Funds upon Termination. XII-1
|
12.4
|
Termination Events. XII-2
|
12.5
|
Merger or Consolidation. XII-3
|
13.1
|
Plan Voluntary. XIII-1
|
13.2
|
Benefits Payable from Trust. XIII-1
|
13.3
|
Non-alienation of Benefits. XIII-1
|
13.4
|
Rights of Participants. XIII-1
|
13.5
|
Enforcement. XIII-2
|
13.6
|
Payment of Plan Expenses. XIII-2
|
13.7
|
Restriction on Benefits. XIII-2
|
13.8
|
Illegal Provisions. XIII-3
|
13.9
|
Forfeitures. XIII-3
|
13.10
|
Lump Sum Payments. XIII-3
|
13.11
|
Repayment of Lump Sums. XIII-3
|
13.12
|
Headings. XIII-4
|
13.13
|
Action by Employer. XIII-4
|
13.14
|
Gender and Number. XIII-4
|
13.15
|
Qualified Military Service. XIII-4
|
14.1
|
Definitions. XIV-1
|
14.2
|
Top-Heavy Plan. XIV-1
|
14.3
|
Restrictions. XIV-2
|
14.4
|
Plan Aggregations. XIV-4
|
APPENDIX A
|
A-1
|
APPENDIX B
|
B-1
|
APPENDIX C
|
C-1
|
APPENDIX D
|
D-1
|
APPENDIX E
|
E-1
|
APPENDIX F
|
F-1
|
APPENDIX G
|
G-1
|
APPENDIX H
|
H-1
|
1.1
|
Plan Name
. The Plan shall be known as the PerkinElmer, Inc. Employees Retirement Plan. Prior to October 26, 1999, the Plan was known as the EG&G, Inc. Employees Retirement Plan.
|
1.2
|
Qualification of Plan
. The Plan and any trust created hereunder are intended to meet the requirements of Sections 401(a) and 501(a) of the Internal Revenue Code of 1986, as amended from time to time, and the Employee Retirement Income Security Act of 1974, as amended from time to time.
|
1.3
|
Purpose of Restatement
. The last amendment and restatement of the Plan, effective January 1, 2007, obtained a favorable ruling from the Internal Revenue Service regarding its qualified status. The current amendment and restatement of the Plan is effective January 1, 2012, except as otherwise specifically provided herein.
|
1.4
|
Application
. The terms and conditions of the Plan shall, in all respects, apply to all Employees of all participating Employers, except as otherwise specifically provided in an Appendix.
|
1.5
|
Plan Frozen
. Notwithstanding any provision of the Plan to the contrary, all accruals under the Plan shall cease effective as of the Freeze Date. The Accrued Benefit of all Participants shall be determined as of the Freeze Date, and shall not thereafter be increased by any service or compensation changes. All Participants actively accruing benefits in the Plan immediately prior to the Freeze Date shall be fully vested in their Accrued Benefit as of the Freeze Date. For the avoidance of doubt, a Participant who completed at least ten (10) Years of Service prior to the Freeze Date and who became a Disabled Participant prior to the Freeze Date, by reason of a determination by the Federal Social Security Administration made prior to the Freeze Date, shall be treated as having accrued his or her Disability Retirement Income benefit payable under Section 4.6 prior
|
2.1
|
“
Accrued Benefit
” means the amount of retirement income as of the calculation date determined in accordance with Section 4.2, and subject to the provisions of Section 4.7.
|
2.2
|
“
Active Service
” means actual performance of duties as an Employee and shall not include time spent on an Authorized Leave of Absence.
|
2.3
|
“
Actuarial Equivalent
” means, for non-lump sum forms of payment, a benefit of equivalent value to the benefit which otherwise would have been provided determined on the basis of the 1971 Group Annuity Mortality Table with no loading, and projected by Scale E, with a one (1) year age setback for the Participant and a five (5) year age setback for any Beneficiary, and on the basis of an interest rate of seven percent (7%).
|
(a)
|
Applicable Mortality Table means the mortality table based on the prevailing commissioners’ standard table (described in Section 807(d)(5)(A) of the Code) used to determine reserves for group annuity contracts issued on the date as of which present value is being determined (without regard to any other subparagraph of Section 807(d)(5) of the Code) that is prescribed by the
|
(b)
|
Applicable Interest Rate means the annual interest rate on 30-year Treasury securities as specified by the Commissioner of the Internal Revenue Service for the Lookback Month, as published in revenue rulings, notices or other guidance published in the Internal Revenue Bulletin. For Plan Years beginning after December 31, 2007, the “Applicable Interest Rate” means the segment rates of interest for the Lookback Month, as defined in Section 417(e)(3)(C) of the Code.
|
(c)
|
Lookback Month means the second full calendar month preceding the first day of the Stability Period.
|
(d)
|
Stability Period means the Plan Year that contains the annuity starting date.
|
2.4
|
“
Actuary
” means a Fellow or Associate of the Society of Actuaries or a Member of the American Academy of Actuaries, who is Enrolled by the Joint Board for the Enrollment of Actuaries and who has been retained by the Administrative Committee as Actuary for the Plan.
|
2.5
|
“
Administrative Committee
” means the Plan’s Administrative Committee consisting of the Company’s Senior Vice President Human Resources, and such other individuals as he shall from time to time appoint.
|
2.6
|
“
Affiliate
” shall mean a corporation (i) in which the Company and/or a Subsidiary has an equity interest of less than fifty percent (50%) or a note or debenture convertible into an equity interest and (ii) which is determined by the Administrative Committee to be an affiliated corporation. For purposes of Article V, Affiliate means the Company and any
|
2.7
|
“
Alternate Payee
” means a Spouse, former Spouse, child, or other dependent of a Participant who is recognized by a Qualified Domestic Relations Order as having a right to receive all or a portion of the benefits of a Participant.
|
2.8
|
“
Applicable Freeze Date
” has the meaning ascribed to it in Section 1.5.
|
2.9
|
“
Authorized Leave of Absence
” means any leave of absence granted by an Employer under the Employer’s leave of absence policy, including a leave granted to an Employee who is absent from work due to either (a) the pregnancy of such Employee, (b) the birth of a child of the Employee, (c) the placement of a child in connection with the adoption of the child by the Employee, or (d) for purposes of caring for the child during the period immediately following the birth or placement for adoption.
|
2.10
|
“
Average Earnings
” means the average annual Earnings of a Participant for the highest sixty (60) successive months of Credited Service for which the Employee is compensated by an Employer out of the last one hundred and twenty (120) months of such Credited Service prior to his date of termination of Employment. A Participant who does not have sixty (60) successive months of Credited Service shall have his average Earnings calculated over a period of months of Credited Service evenly divisible by twelve. If such a Participant’s successive months of Credited Service are not evenly divisible by twelve, Earnings attributable to a period of Credited Service of less than twelve months shall be annualized.
|
2.11
|
“
Beneficiary
” means a person(s), trust, or other entity designated by the Participant, on the form and in a manner prescribed by the Administrative Committee, to receive any benefits which shall be payable under the Plan in the event of the Participant’s death, or in the absence of such designation, the Participant’s estate. Pre-retirement death benefits which become payable under Article VIII may only be paid to a Participant’s Eligible Spouse (or former spouse to the extent provided under a Qualified Domestic Relations Order).
|
2.12
|
“
Board
” means the Board of Directors of the Company.
|
2.13
|
“
Break-in-Service
” means a calendar year after the Effective Date during which a Participant completes less than five hundred (500) Hours of Service.
|
2.14
|
“
Code
” means the Internal Revenue Code of 1986, as amended from time to time, and any regulations issued thereunder.
|
2.15
|
“
Company
” means PerkinElmer, Inc. Prior to October 26, 1999, Company means EG&G, Inc.
|
2.16
|
“
Credited Service
” means that portion of a Participant’s Employment, as determined in accordance with Article VII, which will be used in determining the amount of a Participant’s retirement benefit under the Plan.
|
2.17
|
“
Defined Benefit Dollar Limitation
” is $160,000, as adjusted, ($200,000 in 2012) effective January 1 of each year, under Section 415(d) of the Code in such manner as the Secretary shall prescribe, and payable in the form of a straight life annuity. A limitation as adjusted under Section 415(d) of the Code will apply to limitation years ending with or within the calendar year for which the adjustment applies.
|
2.18
|
“
Disabled Participant
” means a Participant who incurs a physical or mental condition which, as determined by the Federal Social Security Administration, renders the Participant eligible to receive disability benefits under Title II of the Federal Social Security Act, as amended from time to time.
|
2.19
|
“
Early Retirement Date
” means the first day of any month which is not more than ten (10) years prior to an Employee’s Normal Retirement Date, which that Employee, who will then have completed at least ten (10) Years of Service, elects, on a written form acceptable to the Administrative Committee, as a date on which he wishes to retire. For an Employee who was a Participant on December 31, 1988, “Early Retirement Date” means the first day of any month after an Employee’s fifty-fifth (55th) birthday, which that Employee, who will then have completed at least ten (10) Years of Service, elects, on a written form acceptable to the Administrative Committee, as a date on which he wishes to retire.
|
2.20
|
“
Earnings
” means the regular base wage or salary received by the Employee from an Employer, Affiliate, or Subsidiary, inclusive of commissions and severance, but exclusive of any bonus, overtime payments, or any other additives to the base wage or salary.
|
2.21
|
“
Effective Date
” shall mean January 1, 2012, the date as of which this amendment and restatement of the Plan is effective except as otherwise specifically provided herein. As so amended and restated, the respective provisions of the Plan shall apply only to Employees who terminate on or after the Effective Date. The rights and benefits, if any, of each other Employee shall be determined in accordance with the respective provisions of the Plan in effect on the date such Employee terminated service.
|
2.22
|
“
Eligible Spouse
” means a person who was legally married to the Participant on the date of retirement or death of the Participant.
|
2.23
|
“
Employee
” means any person employed by an Employer. A “Full-Time Employee” is an Employee who works the regular full-time workweek for his Employer, whether or not that Employee is considered regular or temporary by the Employer. A “Part-Time Employee” is an Employee who does not normally work the regular full-time workweek for his Employer, whether or not that Employee is considered regular or temporary by the Employer.
|
2.24
|
“
Employer
” means the Company and/or a Subsidiary which is authorized by the Board to participate in the Plan and, in fact, does adopt the Plan.
|
2.25
|
“
Employment
” means service in the employ of an Employer, provided, however, that transfer from one Employer to another does not constitute a termination of Employment hereunder whatever its common law effects.
|
2.26
|
“
ERISA
” means Public Law 93-406, Employee Retirement Income Security Act of 1974, as amended from time to time.
|
2.27
|
“
Freeze Date
” means January 31, 2011.
|
2.28
|
“
Hour of Service
” shall be determined from the Employer’s records and shall include:
|
(a)
|
hours for which an Employee is directly or indirectly paid, or is entitled to payment, for the performance of duties for an Employer;
|
(b)
|
hours for which back pay, irrespective of mitigation of damages, is either awarded to or agreed by the Employer; and
|
(c)
|
hours for which an Employee is paid, or entitled to payment, by an Employer on account of a period of time during which no duties are performed (irrespective of whether or not the Employee is still in the Employment of an Employer) due to vacation, holiday, illness, incapacity (including disability), layoff, jury duty, military duty or leave of absence.
|
(d)
|
Notwithstanding anything to the contrary contained in the foregoing, an Employee may receive credit for the same Hour of Service only under one of the preceding subsections;
|
(i)
|
no more than five hundred one (501) Hours of Service are required to be credited under Paragraph (c) above to an Employee on account of any single continuous period during which the Employee performs no duties (whether or not such period occurs in a single Year); and
|
(ii)
|
an hour for which an Employee is paid or entitled to payment on account of a period during which no duties are performed is not required to be credited to the Employee if such payment:
|
(A)
|
is made or due under a plan maintained solely for the purpose of complying with applicable workers’ compensation or unemployment compensation or disability insurance laws, or
|
(B)
|
solely reimburses the Employee for medical or medically-related expenses incurred by the Employee.
|
(e)
|
Each hour not counted under Paragraphs (a), (b), (c) or (d) above during a period of military service, in the case of an Employee who was employed by the Employer prior to such military service and who returns to employment with the Employer while protected by reemployment rights under federal law.
|
(f)
|
Hours of Service, except as provided below, will be credited to the Year to which they are attributable. In the case of Hours of Service attributable to a period of no more than thirty-one (31) days which overlaps two (2) Years, all such Hours of Service shall be credited to either Year, as determined by the Administrative Committee.
|
2.29
|
“
IDS
” and “
IDS Final Employment Date
” have the meaning ascribed to them in Section 3.9.
|
2.30
|
“
Investment Manager
” means the individuals and/or other entities appointed in accordance with Section 9.10 who have acknowledged in writing that they are a Named Fiduciary with respect to the Plan and who is:
|
(a)
|
registered as an investment advisor under the Investment Advisors Act of 1940; or
|
(b)
|
a bank, as defined in such Act; or
|
(c)
|
an insurance company qualified to manage, acquire or dispose of assets of pension plans.
|
2.31
|
“
Joint Annuitant
” means a person designated by a Participant, in accordance with Section 8.2.
|
2.32
|
“
Maximum Permissible Benefit
” means the lesser of the Defined Benefit Dollar Limitation or the Defined Benefit Compensation Limitation (both adjusted where required, as provided in (a) and, if applicable, in (b) or (c) below).
|
(a)
|
If the Participant has fewer than 10 Years of Participation in the Plan, the Defined Benefit Dollar Limitation shall be multiplied by a fraction, (i) the numerator of which is the number of years (or part thereof) of participation in the Plan and (ii) the denominator of which is 10. In the case of a Participant who has fewer than 10 Years of Service with the Employer, the Defined Benefit Compensation Limitation shall be multiplied by a fraction, (i) the numerator of which is the number of Years (or part thereof) of Service with the Employer and (ii) the denominator of which is 10.
|
(b)
|
If the benefit of a Participant begins prior to age 62, the Defined Benefit Dollar Limitation applicable to the Participant at such earlier age is an annual benefit payable in the form of a straight life annuity beginning at the earlier age that is the Actuarial Equivalent of the Defined Benefit Dollar Limitation applicable to the Participant at age 62 (adjusted under (a) above, if required). The Defined Benefit Dollar Limitation applicable at an age prior to age 62 is determined as the lesser of (i) the Actuarial Equivalent (at such age) of the Defined Benefit Dollar Limitation computed using the interest rate and mortality table specified in Section 2.3 of the Plan and (ii) the Actuarial Equivalent (at such age) of the Defined Benefit Dollar Limitation computed using a 5 percent (5%) interest rate and the applicable Mortality Table as defined in Section 2.3(a) of the Plan. Any decrease in the Defined Benefit Dollar Limitation determined in accordance with this paragraph (b) shall not reflect a mortality decrement if benefits are not forfeited upon the death of the Participant. If any benefits are forfeited upon death, the full mortality decrement is taken into account.
|
(c)
|
If the benefit of a Participant begins after the Participant attains age 65, the Defined Benefit Dollar Limitation applicable to the Participant at the later age is
|
2.33
|
“
Named Fiduciary
” means the Administrative Committee, the Trustees and the Investment Manager(s), but only with respect to the specific responsibilities of each for the administration of the Plan.
|
2.34
|
“
Normal Retirement Age
” means the age determined in accordance with the following table:
|
Age
|
Year of Birth
|
65
|
1937 and Earlier
|
65 plus 2
months/year |
1938 – 1942
|
66
|
1943 – 1954
|
66 plus 2
months/year |
1955 – 1959
|
67
|
1960 and later
|
2.35
|
“
Normal Retirement Date
” means the first day of the month following the month in which the Participant attains his Normal Retirement Age.
|
2.36
|
“
Participant
” means an Employee who meets the requirements for participation as provided in Article III, or a former Employee who is receiving benefits under the Plan or who has vested rights under the Plan.
|
2.37
|
“
Plan
” means the PerkinElmer, Inc. Employees Retirement Plan as set forth herein and as it may from time to time be duly amended. Prior to October 26, 1999, Plan means the EG&G, Inc. Employees Retirement Plan.
|
2.38
|
“
Plan Year
” means the twelve (12) month period commencing on January 1st and ending on December 31st.
|
2.39
|
“
Predecessor Corporation
” means a corporation that has merged into or consolidated with, or whose voting stock or assets have all or substantially all been acquired by the Company or a Subsidiary.
|
2.40
|
“
Qualified Domestic Relations Order
” means an order as defined in Section 414(p) of the Code.
|
2.41
|
“
Rehired Participant
” means an individual who terminates Employment with an Employer and begins employment with an Employer, Affiliate or Subsidiary on a date later than the next regularly scheduled work day and would have his prior service reinstated under the reinstatement rules set forth in Section 5.3(b) had he been rehired by an Employer.
|
2.42
|
“
Social Security Tax Base
” means the thirty-five (35) year average of maximum wages upon which Social Security taxes were based during each of the calendar years ending with the calendar year in which the Employee reaches his Normal Retirement Age, assuming no change in the Social Security maximum taxable wage after the Employee’s termination of Employment. In order to determine the Social Security Tax Base for an Employee who works beyond his Normal Retirement Age, it will be assumed that the Employee’s Normal Retirement Age occurs in his year of termination.
|
2.43
|
“
Subsidiary
” means a corporation fifty percent (50%) or more of the voting stock of which is owned legally or beneficially by the Company and/or by a Subsidiary or Subsidiaries of the Company.
|
2.44
|
“
Surviving Spouse Option
” means that the Participant’s retirement income will be paid in the form of a fifty percent (50%) Joint and Survivor option determined in accordance with Section 8.1(b)(i).
|
2.45
|
“
Transaction Date
” has the meaning ascribed to it in Section 3.5.
|
2.46
|
“
Transferred Participant
” means an individual who terminates Employment with an Employer and begins employment with an Affiliate or Subsidiary on the next following regularly scheduled workday.
|
2.47
|
“
Trust Fund
” means any fund established by a trust agreement and held by a Trustee or Trustees in order to provide for benefits under the Plan.
|
2.48
|
“
Trustees
” means the persons or corporations named by the Company, and who have agreed to serve in such capacity.
|
2.49
|
“
Year
” means the twelve (12) month period ending on the day prior to the anniversary of the Employee’s date of hire by an Employer, or where the Employee has incurred a Break-in-Service, the twelve (12) month period ending on the day prior to the anniversary of the Employee’s reemployment commencement date.
|
2.50
|
“
Year of Eligibility Service
” means a Year in which a Participant is credited with one thousand (1,000) or more Hours of Service.
|
2.51
|
“
Year of Service
” means a Year of Service as defined in Article V.
|
3.1
|
Eligibility to Participate
. Each Employee who was a Participant in the Plan as of December 31, 2011 shall continue to participate in the Plan, subject to the provisions of Section 1.5.
|
3.2
|
Former Participant
. A former Participant receiving or entitled to receive a retirement benefit under the Plan shall continue as a Participant until the date of his death. The rights and benefits of a former Participant will be determined in accordance with the provisions of the Plan in effect on the Participant’s retirement date or date of termination of Employment, if earlier.
|
3.3
|
Plan Closed
. In no event shall an individual become a Participant after March 15, 2003.
|
3.4
|
Belfab
. Former hourly employees of Belfab who were acquired by the Employer shall participate in the Plan but shall not be subject to the basic terms and conditions of the Plan. Instead, such former hourly employees of Belfab shall be subject to the terms and conditions of the John Crane, Inc. Employees’ Pension Plan - Belfab Hourly Employees as in effect on March 31, 1998, the terms and conditions of which are explicitly herein incorporated by reference.
|
3.5
|
Fluid Sciences Participants
. Active Participants employed by the Fluid Sciences Strategic Business Unit at the sites identified below ceased to be employed by the Company as of the transaction dates identified below (each, a “Transaction Date”). Any such Fluid Sciences Participant who remained employed by the Company through his applicable Transaction Date shall have a fully vested and nonforfeitable right to his Accrued Benefits as determined as of the Transaction Date. No further benefits shall accrue under the Plan for such a Fluid Sciences Participant for any period occurring after his applicable Transaction Date.
|
Division
|
Location Number(s)
|
Transaction Date
|
Industrial Technologies
|
San Antonio – 043
|
November 9, 2005
|
Aerospace
|
Beltsville – 075
|
December 6, 2005
|
|
Phelps – 025
|
December 6, 2005
|
|
Warwick – 031, 040
|
December 6, 2005
|
Semiconductor
|
Daytona
|
February 28, 2006
|
3.6
|
Participation by Former Missouri Metals Employees
. Notwithstanding anything herein to the contrary, effective on September 30, 2004 (the date of the merger of the Missouri Metals Shaping Company Employees Pension Plan with and into the Plan), former hourly employees of the Company who participated in the Missouri Metals Shaping Company Employees Pension Plan will become Participants in the Plan. Such Participants shall not be subject to the benefit provisions of Articles III, IV, V, VII, and VIII hereunder, but shall instead be subject to the benefit accrual and time and form of payment provisions of the Missouri Metals Shaping Company Pension Plan as of September 30, 2004 (as set forth in Appendix G) , and the terms of such provisions are explicitly herein incorporated by reference. In no event shall the Accrued Benefit of a Participant described in this Section 3.6 be less than his accrued benefit under the Missouri Metals Shaping Company Pension Plan.
|
3.7
|
Participation by Former Shop Union Employees
. Notwithstanding anything herein to the contrary, effective on March 31, 2007 (the date of the merger of the PerkinElmer Shop Union Pension Plan with and into the Plan), former hourly employees of the Company who participated in the PerkinElmer Shop Union Pension Plan will become Participants in the Plan. Such Participants shall not be subject to the benefit provisions of Articles III, IV, V, VII, and VIII hereunder, but shall instead be subject to the benefit accrual and time and form of payment provisions of the PerkinElmer Shop Union Pension Plan as of March 31, 2007 (as set forth in Appendix H) , and the terms of such provisions are explicitly herein incorporated by reference. In no event shall the Accrued Benefit of a Participant described in this Section 3.7 be less than his accrued benefit under the PerkinElmer Shop Union Pension Plan.
|
3.8
|
Exclusions
. No individual whose work site location is identified on Schedule 3.8 to the Plan, as from time to time in effect, shall become a Participant in the Plan.
|
3.9
|
IDS Participants
. Active Participants employed in the Company’s Illumination and Detection Solutions (“IDS”) business ceased to be employed by the Company and its Subsidiaries as of November 28, 2010 (the “IDS Final Employment Date”). Any such IDS Participant who remained employed by the Company through the IDS Final Employment Date shall have a fully vested and nonforfeitable right to his Accrued Benefit as determined as of the IDS Final Employment Date. For the avoidance of doubt, no further benefits shall accrue under the Plan for such IDS Participant for any period occurring after the applicable IDS Final Employment Date.
|
4.1
|
General
. To establish eligibility for a retirement benefit, a Participant shall file an application for such benefit on a form and in a manner prescribed by the Administrative Committee.
|
4.2
|
Normal Retirement Income
. A Participant who retires upon attaining his Normal Retirement Age shall have a nonforfeitable right to his retirement income and shall be entitled to receive a monthly retirement income for life, payable as of his Normal Retirement Date, which shall be the greatest of (a), (b) and (c) below:
|
(a)
|
Seventy dollars and eighty-three cents ($70.83)
|
(b)
|
One-twelfth (1/12) of the sum of (i), (ii) and (iii) below:
|
(i)
|
eighty-five one hundredth’s percent (0.85%) of his Average Earnings, multiplied by his years of Credited Service, plus
|
(ii)
|
seventy-five one hundredth’s percent (0.75%) of that part, if any, of his Average Earnings in excess of the Social Security Tax Base, multiplied by the lesser of:
|
(A)
|
his years of Credited Service, and
|
(B)
|
thirty-five (35)
|
(iii)
|
solely for Participants listed in Appendix B, the product of (A) multiplied by (B) below where:
|
(A)
|
one and six-tenth’s percent (1.6%) of his Average Earnings multiplied by his years of Credited Service, times the ratio determined by dividing his service credit as set forth in Appendix B (if any) by twenty-five (25), and
|
(B)
|
equals, for a Participant who retires or terminates employment prior to attaining his Normal Retirement Age, a fraction, the numerator of which is the Participant’s actual years of Credited Service, and the denominator of which is the Participant’s Years of Credited Service that he would have had at Normal Retirement Age (in both cases disregarding Credited Service before January 1, 1994).
|
(c)
|
For an Employee who was a Participant as of December 31, 2000, the monthly retirement benefit income accrued as determined under the provisions of the Plan determined as of that date.
|
(d)
|
No further benefits shall accrue under the Plan for any period occurring after January 31, 2001 for any Participant who is an Employee of Life Science Divisions 154 and 179 (formerly EG&G Wallac) other than as may be required in accordance with Section 416 of the Code or other than in connection with a transfer of the Participant’s employment to a site whose employees are active Participants accruing benefits under Section 4.2 (subject to Section 3.3).
|
(e)
|
No further benefits shall accrue under the Plan for any period occurring after March 15, 2003 for any Participant who is employed by Corporate (Strategic Business Unit 011) or by Analytical Instruments (Strategic Business Unit 193 or 229) other than as may be required in accordance with Section 416 of the Code or other than in connection with a transfer of the Participant’s employment to a site whose employees are active Participants accruing benefits under Section 4.2 (subject to Section 3.3). This Section 4.2(e) shall not apply to any Participant employed at either of the foregoing designated locations who, as of March 15, 2003, had both attained age 50 and accrued 10 years of Credited Service (the “Grandfathered Participants”). The provisions of the Plan as in effect prior to the effective date of this Section 4.2(e) shall continue to apply to the Grandfathered
|
(f)
|
Effective January 1, 2009, the Company discontinued the use of “Strategic Business Unit” as a basis for classifying its workforce and instead uses site codes. Each Participant actively accruing benefits as of December 31, 2008 shall remain eligible for the accrual of benefits under the provisions of the Plan for so long as he continues employment with the Employer at the site code he was employed at on December 31, 2008 (or at another site whose employees are active Participants accruing benefits under Section 4.2 (subject to Section 3.3 and Section 4.2(g)).
|
(g)
|
Notwithstanding any provisions of the Plan to the contrary, no further benefits shall accrue under the Plan for any period occurring after January 31, 2011.
|
4.3
|
Early Retirement Income
. A Participant retiring on an Early Retirement Date shall be entitled to receive a retirement income which shall be determined in accordance with either (a) or (b) below, as elected by the Participant:
|
(a)
|
The Participant may elect to defer commencement of his retirement income until his Normal Retirement Date. The amount of his retirement income will be determined in accordance with Section 4.2 based on his Credited Service as of his Early Retirement Date.
|
(b)
|
The Participant may elect at his Early Retirement Date or at any time prior to his Normal Retirement Date to have his retirement income commence on the first day of any month after the date of his retirement, but no later than his Normal Retirement Date. The amount of his retirement income payable at his Early Retirement Date shall be a percentage of his retirement income payable at his Normal Retirement Date as follows:
|
Years Prior to Normal
Retirement Age |
Percent of Retirement Benefit Payable at Early Retirement Date For an Employee Retiring With Less than Thirty (30) Years of Service
|
Percent of Retirement Benefit at Early Retirement Date For an Employee Retiring With At Least Thirty (30) Years of Service
|
|
|
Sections 4.2(b)(i),
4.2(b)(ii) and 4.2(b)(iii) Benefit |
Sections 4.2(a), 4.2(b)(i) and 4.2(b)(iii) Benefit
|
Section 4.2(b)(ii) Benefit
|
0
|
100.0%
|
100.0%
|
100.0%
|
1
|
93.3
|
100.0
|
93.3
|
2
|
86.7
|
100.0
|
86.7
|
3
|
80.0
|
100.0
|
80.0
|
4
|
73.3
|
91.6
|
73.3
|
5
|
66.7
|
83.2
|
66.7
|
6
|
63.3
|
79.0
|
63.3
|
7
|
60.0
|
74.8
|
60.0
|
8
|
56.7
|
70.6
|
56.7
|
9
|
53.3
|
66.4
|
53.3
|
10
|
50.0
|
62.2
|
50.0
|
11
|
45.0
|
58.0
|
45.0
|
12
|
40.0
|
53.8
|
40.0
|
4.4
|
Postponed Retirement Income
. A Participant may remain employed after his Normal Retirement Age. His retirement benefits will not begin until he actually retires. His additional Years of Service after his Normal Retirement Date will be counted as Credited Service and any salary increases after his Normal Retirement Age will be taken into consideration in the determination of Average Earnings.
|
4.5
|
Termination Prior to Retirement
. A Participant whose Employment terminates prior to his Normal Retirement Age but after the completion of at least five (5) Years of Service shall be entitled to receive a monthly retirement income for life payable as of his Normal Retirement Date, which monthly retirement income shall be determined in accordance with Section 4.2. A Participant whose Employment terminates after the completion of at least ten (10) Years of Service shall also be eligible to elect an Early Retirement Date, in which case the amount of his retirement income shall be determined in accordance with Section 4.3(b). Notwithstanding the foregoing, each Participant who (i) was employed in the operation of the business of PKL LLC on October 2, 2000 and who became a “Transferred Employee” pursuant to the stock purchase agreement dated September 15, 2000 by and between the Employer and Kenlee Precision Corporation and (ii) had three (3) or more Years of Service on September, 2000, shall have a nonforfeitable right to receive a monthly retirement income for life payable as of his Normal Retirement Date and determined in accordance with Section 4.2
|
4.6
|
Disability Retirement Income
. A Participant, who has completed at least ten (10) Years of Service and becomes a Disabled Participant while an Employee, will be eligible to receive a retirement benefit determined in accordance with Section 4.2 commencing at his Normal Retirement Date. Provided, however, that if such Participant is receiving Long-Term Disability (LTD) benefit payments under an Employer-sponsored LTD plan, his LTD benefit payments will be reduced by the amount of his benefit payable under the Plan. For purposes of the Plan, the Participant’s Average Earnings shall be computed by assuming that his Earnings during his status as a Disabled Participant were at the same rate as in effect on the last day of Active Service as an Employee and the Participant shall be considered as accruing Hours of Service in accordance with the normal work week for each week that he remains a Disabled Participant up to his Normal Retirement Date or his annuity starting date with the Company, if earlier. A Disabled Participant who elects an Early Retirement Date shall have his benefit determined by applying the provisions of Section 4.3 to his retirement income payable at his Normal Retirement Date, computing such retirement income by taking into account the provisions of this Section 4.6.
|
4.7
|
Determination of Accrued Benefit for Certain Participants
. Notwithstanding any other provision in the Plan, each Section 401(a)(17) Participant’s Accrued Benefit under the Plan will be the greater of:
|
(a)
|
the Participant’s Accrued Benefit as of December 31, 1993, frozen in accordance with Treasury Regulation 1.401(a)(4)-13, or
|
(b)
|
the Participant’s Accrued Benefit determined with respect to the benefit formula applicable for the Plan Year beginning on January 1, 1994, as applied to the Participant’s total years of Credited Service taken into account under the Plan for purposes of benefit accruals and based on the two hundred thousand dollar Earnings limit, as adjusted, ($250,000 for 2012) as described in Section 2.20.
|
(i)
|
A Section 401(a)(17) Participant means a Participant whose current Accrued Benefit as of a date on or after the first day of the first Plan Year beginning on or after January 1, 1994, is based on Earnings for a year beginning prior to the first day of the first Plan Year beginning on or after January 1, 1994, that exceeded the current Section 401(a)(17) of the Code limitation on Earnings considered for this purpose.
|
5.1
|
General
. A Participant’s eligibility for retirement income benefits under the Plan shall be based on his Years of Service. Years of Service shall be determined in accordance with Section 5.2 below.
|
5.2
|
Determination of Years of Service
. A Participant’s Years of Service shall be determined in accordance with the following:
|
(a)
|
For a Participant as of the Effective Date, who had been covered under the prior provisions of the Plan, the Participant’s continuous service with the Employer prior to the Effective Date, determined in accordance with the provisions of the Plan in effect prior to the Effective Date, shall be counted as Years of Service.
|
(b)
|
Subject to Section 5.2(a), a Participant shall accrue a Year of Service for each Year ending after the Effective Date in which he has one thousand (1,000) or more Hours of Service. Any Year in which the Participant has less than one thousand (1,000) but more than five hundred one (501) Hours of Service shall not constitute a Break-in-Service but will not be considered as a Year of Service. If in any Year, the Participant has less than five hundred one (501) Hours of Service, he shall incur a Break-in-Service.
|
(c)
|
For purposes of Section 5.2(b), a Participant shall be considered as accruing Hours of Service in accordance with his normal work week for each week:
|
(i)
|
while on an Authorized Leave of Absence, if at or before the end of such Authorized Leave of Absence, the Participant returns to Active Service, provided however, that a Participant on an Authorized Leave of Absence who fails to return to Active Service at or before the end of such Authorized Leave of Absence, will be considered to have terminated his Employment as of the last day of Active Service with an Employer or with
|
(ii)
|
during the one (1) year period following the date on which a Participant is laid off due to a reduction in work force provided the Participant returns to Active Service within the one (1) year period following his date of termination. If the Participant does not return to Active Service within said one (1) year period, whether because he was not recalled or was recalled but did not return to Active Service, the Participant shall be considered to have terminated his service as of the last day of Active Service.
|
(iii)
|
during any period for which Hours of Service shall be credited pursuant to applicable law.
|
(d)
|
Except as provided in (e) below, all or part of the service with an Affiliate, Subsidiary, or Predecessor Corporation, while such entities were members of the same controlled group (as such term is defined in Section 1563 of the Code) immediately preceding Employment with the Employer, shall be counted as Years of Service. Such Years of Service shall be determined in accordance with the provisions of this Section 5.2.
|
(e)
|
Unless otherwise required by ERISA, the Administrative Committee may, but shall not be required to, give credit for service with an Affiliate, Subsidiary, or Predecessor Corporation immediately preceding Employment with an Employer under any of the following conditions:
|
(i)
|
The Affiliate, Subsidiary, or Predecessor Corporation was not a part of the same controlled group at the time the service was rendered, or
|
(ii)
|
The Affiliate, Subsidiary, or Predecessor Corporation maintained a Qualified Plan which required voluntary contributions from an Employee as a prerequisite for participation and the Employee elected not to participate, or
|
(iii)
|
The Affiliate, Subsidiary, or Predecessor Corporation maintained a Qualified Plan which provided in the terms of such Plan that certain service was not to be counted in determining Years of Service.
|
(f)
|
If a Participant was an Employee of the Company, terminated his Employment and is rehired, the following rules shall apply in determining his Years of Service:
|
(i)
|
In the case of a Participant who had five (5) or more Years of Service, including the period of a Participant’s service determined in accordance with Section 5.2(a), his Years of Service accrued during his prior period of Employment shall be reinstated as of the date of his re-employment.
|
(ii)
|
In the case of a Participant whose Employment terminated before completing five (5) Years of Service, including the period of a Participant’s service determined in accordance with Section 5.2(a), his Years of Service accrued during his prior period of Employment shall be reinstated unless the “Break-in-Service” exceeds the greater of: (i) five (5) years, or (ii) the number of prior Years of Service.
|
(g)
|
In no event shall a Participant be deemed to have more than one (1) Year of Service with respect to any Year.
|
5.3
|
Rehired Participant
.
|
(a)
|
In the event a former Employee is hired by an Affiliate or Subsidiary, such former Employee’s years of service with the Affiliate or Subsidiary, while such Affiliate or Subsidiary is a member of the same control group (as such term is defined in
|
(b)
|
The prior period of service with an Affiliate or Subsidiary accrued by a Rehired Participant will be reinstated in the Plan as of his date of hire by an Employer provided he meets the rule set forth in Section 5.2 above.
|
6.1
|
Defined Benefit Limitations
. The limitations of this Article VI shall apply in Limitation Years beginning on or after July 1, 2007, except as otherwise provided herein:
|
(a)
|
The Annual Benefit otherwise payable to a Participant at any time will not exceed the Maximum Permissible Benefit. If the benefit the Participant would otherwise accrue in a Limitation Year would produce an Annual Benefit in excess of the Maximum Permissible Benefit, the benefit must be limited (or the rate of accrual reduced) to a benefit that does not exceed the Maximum Permissible Benefit as defined in Section 6.2(i).
|
(b)
|
If a Participant is, or has ever been, a participant in more than one defined benefit plan maintained by the Employer, the sum of the Participant’s Annual Benefits from all such plans may not exceed the Maximum Permissible Benefit. Where the Participant’s employer-provided benefits under all defined benefit plans ever maintained by the Employer (determined as of the same age) would exceed the Maximum Permissible Benefit applicable at that age, the Annual Benefit provided under the Plan shall be limited to the extent necessary to prevent the Maximum Permissible Benefit from being exceeded.
|
(c)
|
The application of the provisions of this Article VI will not cause the Maximum Permissible Benefit for any Participant to be less than the Participant’s accrued benefit under all the defined benefit plans of the Employer or a Predecessor Employer as of the end of the last Limitation Year beginning before July 1, 2007 under provisions of the plans that were both adopted and in effect before April 5, 2007. The preceding sentence applies only if the provisions of such defined benefit plans that were both adopted and in effect before April 5, 2007 satisfied the applicable requirement of statutory provisions, regulations, and other published guidance relating to Section 415 of the Code in effect as of the end of
|
(d)
|
If as a result of actuarial increases to the benefit of a Participant who delays commencement of benefits beyond Normal Retirement Age the accrued benefit of such Participant would exceed the limitation under Section 6.1 of the Plan for the Limitation Year, immediately before the actuarial increase to the Participant’s benefit that would cause such Participant’s benefit to exceed the limitations of Section 6.1 of the Plan, payment of benefits to such Participant will be suspended in accordance with Section 8.5 of the Plan, if applicable; otherwise, distribution of the Participant’s benefit will commence.
|
6.2
|
Definitions
.
|
(a)
|
Annual Benefit
: A benefit that is payable annually in the form of a straight life annuity. Except as provided below, where a benefit is payable in a form other than a straight life annuity, the benefit must be adjusted to an actuarially equivalent straight life annuity that begins at the same time as such other form of benefit and is payable on the first day of each month, before applying the limitations of this Article VI. For a Participant who has or will have distributions commencing at more than one annuity starting date, the Annual Benefit will be determined as of each such annuity starting date (and will satisfy the limitations of this Article VI as of each such date), actuarially adjusting for past and future distributions of benefits commencing at the other annuity starting dates. For this purpose, the determination of whether a new starting date has occurred shall be made without regarding to Treasury Regulation Section 1.401(a)-20, Q&A 10(d), and with regard to Treasury Regulation Sections 1.415(b)-1(b)(1)(iii)(B) and (C).
|
(i)
|
Benefit forms not subject to Section 417(e)(3): The straight life annuity that is actuarially equivalent to the Participant’s form of benefit shall be determined under this Section 6.2(a)(i) if the form of the Participant’s benefit is either (1) a nondecreasing annuity (other than a straight life annuity) payable for a period of not less than the life of the Participant (or, in the case of a qualified pre-retirement survivor annuity, the life of the surviving spouse), or (2) an annuity that decreases during the life of the Participant merely because of (a) the death of the survivor annuitant (but only if the reduction is not below fifty percent (50%) of the benefit
|
(A)
|
Limitation Years beginning before July 1, 2007: For Limitation Years beginning before July 1, 2007, the Actuarially Equivalent straight life annuity is equal to the annual amount of the straight life annuity commencing at the same annuity starting date that has the same actuarial present value as the Participant’s form of benefit computed using whichever of the following produces the greater annual amounts: (1) the interest rate specified in Section 2.3 of the Plan and the mortality table (or other tabular factor) specified in Section 2.3 of the Plan for adjusting benefits in the same form; and (2) a five percent (5%) interest rate assumption and the applicable mortality table defined in Section 2.3(a) of the Plan for that annuity starting date.
|
(B)
|
Limitation Years beginning on or after July 1, 2007. For Limitation Years beginning on or after July 1, 2007, the Actuarially Equivalent straight life annuity is equal to the greater of (1) the annual amount of the straight life annuity (if any) payable to the Participant under the Plan commencing at the same annuity starting date as the Participant’s form of benefit; and (2) the annual amount of the straight life annuity commencing at the same annuity starting date that has the same actuarial present value as the Participant’s form of benefit computed using a five percent (5%) interest rate assumption and the applicable mortality table defined in Section 2.3(a) of the Plan for that annuity starting date.
|
(ii)
|
Benefit Forms Subject to Section 417(e)(3): The straight life annuity that is actuarially equivalent to the Participant’s form of benefit shall be
|
(A)
|
Annuity Starting Date in Plan Years Beginning After 2005. If the annuity starting date of the Participant’s form of benefit is in a Plan Year beginning after 2005, the actuarially equivalent straight life annuity is equal to the greatest of (1) the annual amount of the straight life annuity commencing at the same annuity starting date that has the same actuarial present value as the Participant’s form of benefit, computed using the interest rate specified in Section 2.3 of the Plan and the mortality table (or other tabular factor) specified in Section 2.3 of the Plan for adjusting benefits in the same form; (2) the annual amount of the straight life annuity commencing at the same annuity starting date that has the same actuarial present value as the Participant’s form of benefit, computed using a 5.5 percent (5.5%) interest rate assumption and the applicable mortality table defined in Section 2.3(a) of the Plan; and (3) the annual amount of the straight life annuity commencing at the same annuity starting date that has the same actuarial present value as the Participant’s form of benefit, computed using the applicable interest rate defined in Section 2.3(b) of the Plan and the applicable mortality table defined in Section 2.3(a) of the Plan, divided by 1.05.
|
(B)
|
Annuity Starting Date in Plan Years Beginning in 2004 or 2005. If the annuity starting date of the Participant’s form of benefit is in a Plan Year beginning in 2004 or 2005, the actuarially equivalent straight life annuity is equal to the annual amount of the straight life annuity commencing at the same annuity starting date that has the same actuarial present value as the Participant’s form of
|
(1)
|
the interest rate specified in Section 2.3 of the Plan and the mortality table (or other tabular factor) specified in Section 2.3 of the Plan for adjusting benefits in the same form;
|
(2)
|
the applicable interest rate defined in Section 2.3(b) of the Plan and the applicable mortality table defined in Section 2.3(a) of the Plan; and
|
(3)
|
the applicable interest rate defined in Section 2.3(b) of the Plan (as in effect on the last day of the last Plan Year beginning before January 1, 2004, under provisions of the
|
(b)
|
Compensation
: Compensation is defined as wages, salaries, and fees for professional services and other amounts received (without regard to whether or not an amount is paid in cash) for personal services actually rendered in the course of employment with the Employer maintaining the Plan to the extent that the amounts are includible in gross income (including, but not limited to, commissions paid salespeople, compensation for services on the basis of a percentage of profits, commissions on insurance premiums, tips, bonuses, fringe benefits, and reimbursements, or other expense allowances under a nonaccountable plan (as described in Section 1.62-2(c) of the Treasury Regulations), and excluding the following:
|
(i)
|
Employer contributions (other than elective contributions described in Sections 402(e)(3), 408(k)(6), 408(p)(2)(A)(i), or 457(b) of the Code) to a plan of deferred compensation (including a simplified employee pension described in Section 408(k) or a simple retirement account described in Section 408(p) and whether or not qualified) to the extent such contributions are not includible in the Employee’s gross income for the taxable year in which contributed, and any distributions (whether or not includible in gross income when distributed) from a plan of deferred compensation (whether or not qualified);
|
(ii)
|
Amounts realized from the exercise of a non-qualified stock option, or when restricted stock (or property) held by the Employee either becomes freely transferable or is no longer subject to a substantial risk of forfeiture;
|
(iii)
|
Amounts realized from the sale, exchange or other disposition of stock acquired under a qualified stock option;
|
(iv)
|
Other amounts that receive special tax benefits, such as premiums for group-term life insurance (but only to the extent that the premiums are not includible in the gross income of the Employee and are not salary reduction amounts that are described in Section 125 of the Code); and
|
(v)
|
Other items of remuneration that are similar to any of the items listed in (i) through (iv).
|
(i)
|
the payment is regular compensation for services during the Employee’s regular working hours, or compensation for services outside the Employee’s regular working hours (such as overtime or shift differential), commissions, bonuses, or other similar payments, and, absent a Severance from Employment, the payments would have been paid to the Employee while the Employee continued in Employment with the Employer.
|
(ii)
|
the payment is for unused accrued bona fide sick, vacation or other leave that the Employee would have been able to use if Employment had continued; or
|
(iii)
|
the payment is received by the Employee pursuant to a nonqualified unfunded deferred compensation plan and would have been paid at the same time if Employment had continued, but only to the extent includible in gross income.
|
(c)
|
Defined Benefit Compensation Limitation
: One hundred percent (100%) of a Participant’s High Three-Year Average Compensation, payable in the form of a straight life annuity. In the case of a Participant who has had a Severance from Employment with the Employer, the Defined Benefit Compensation Limitation applicable to the Participant in any Limitation Year beginning after the date of severance shall be automatically adjusted by multiplying the limitation applicable to the Participant in the prior Limitation Year by the annual adjustment factor under Section 415(d) of the Code that is published in the Internal Revenue Bulletin. The adjusted compensation limit shall apply to Limitation Years ending with or within the calendar year of the date of the adjustment, but a Participant’s benefits shall not reflect the adjusted limit prior to January 1 of that calendar year.
|
(d)
|
Defined Benefit Dollar Limitation
: $160,000, as automatically adjusted, effective January 1st of each year, under Section 415(d) of the Code in such manner as the Secretary shall prescribe, and payable in the form of a straight life annuity ($200,000 for 2012). The new limitation will apply to Limitation Years ending
|
(e)
|
Employer
: For purposes of this article, Employer shall mean the Employer that adopts the Plan, and all members of a controlled group of corporations (as defined in Section 414(b) of the Code, as modified by Section 415(h) of the Code), all commonly controlled trades or businesses (as defined in Section 414(c) of the Code, as modified by Section 415(h) of the Code), or affiliated service groups (as defined in Section 414(m) of the Code) of which the adopting Employer is a part, and any other entity required to be aggregated with the Employer pursuant to Section 414(o) of the Code.
|
(f)
|
Formerly Affiliated Plan of the Employer
: A plan that, immediately prior to the cessation of affiliation, was actually maintained by the Employer and, immediately after the cessation of the affiliation, is not actually maintained by the Employer. For this purpose, cessation of affiliation means the event that causes an entity to no longer be considered the Employer, such as the sale of a member controlled group of corporations, as defined in Section 414(b) of the Code, as modified by Section 415(h) of the Code, to an unrelated corporation, or that causes a plan to not actually be maintained by the Employer, such as transfer of plan sponsorship outside a controlled group.
|
(g)
|
High Three-Year Average Compensation
: The average Compensation for the three (3) consecutive years of service (or, if the Participant has less than three (3) consecutive years of service, the Participant’s longest consecutive period of service, including fractions of years, but not less than one year) with the Employer that produces the highest average. A Year of Service is defined in Section 2.51. In the case of a Participant who is rehired by the Employer after a Severance from Employment, the Participant’s High Three-Year Average Compensation shall be calculated by excluding all Years of Service for which the
|
(h)
|
Limitation Year
: The Plan Year as defined in Section 2.38.
|
(i)
|
Maximum Permissible Benefit
: The lesser of the Defined Benefit Dollar Limitation or the Defined Benefit Compensation Limitation (both adjusted where required, as provided below).
|
(i)
|
If the Participant has less than 10 Years of Participation in the Plan, the Defined Benefit Dollar Limitation shall be multiplied by a fraction -- (i) the numerator of which is the number of years (or part thereof, but less than one year) of participation in the Plan, and (ii) the denominator of which is 10. In the case of a Participant who has less than 10 Years of Service with the Employer, the Defined Benefit Compensation Limitation shall be multiplied by a fraction -- (i) the numerator of which is the number of Years (or part thereof, but not less than one year) of Service with the Employer, and (ii) the denominator of which is 10.
|
(ii)
|
Effective for benefits commencing in Limitation Years ending after December 31, 2001, the Defined Benefit Dollar Limitation shall be adjusted if the annuity starting date of the Participant’s benefit is before age 62 or after age 65. If the annuity starting date is before age 62, the Defined Benefit Dollar Limitation shall be adjusted under Section 6.2(i)(ii)(A), as modified by Section 6.2(i)(ii)(C)). If the annuity starting date is after age 65, the Defined Benefit Dollar Limitation shall be adjusted under Section 6.2(i)(ii)(B), as modified by Section 6.2(i)(ii)(C).
|
(A)
|
Adjustment of Defined Benefit Dollar Limitation for Benefit Commencement Before Age 62:
|
(1)
|
Limitation Years Beginning Before July 1, 2007. If the annuity starting date for the Participant’s benefit is prior to age 62 and occurs in a Limitation Year beginning before July 1, 2007, the Defined Benefit Dollar Limitation for the Participant’s annuity staring date is the annual amount of a benefit payable in the form of a straight life annuity commencing at the Participant’s annuity starting date that is the actuarial equivalent of the Defined Benefit Dollar Limitation (adjusted under Section 6.2(i)(i) for Years of Participation less than 10, if required) with actuarial equivalence computed using whichever of the following produces the smaller annual amount: (i) the interest rate specified in Section 2.3 of the Plan and the mortality table (or other tabular factor) specified in Section 2.3 of the Plan; or (2) a five percent (5%) interest rate assumption and the applicable mortality table as defined in Section 2.3(a) of the Plan.
|
(2)
|
Limitation Years Beginning on or After July 1, 2007. If the annuity starting date for the Participant’s benefit is prior to age 62 and occurs in a Limitation Year beginning on or after July 1, 2007, and the Plan does not have an immediately commencing straight life annuity payable at both age 62 and the age of benefit commencement, the Defined Benefit Dollar Limitation for the Participant’s annuity starting date is the annual amount of a benefit payable in the form of a straight life annuity commencing at the Participant’s annuity starting date that this the
|
(B)
|
Adjustment of Defined Benefit Dollar Limitation for Benefit Commencement After Age 65:
|
(1)
|
Limitation Years Beginning Before July 1, 2007. If the annuity starting date for the Participant’s benefit is after age 65 and occurs in a Limitation Year beginning before July 1, 2007, the Defined Benefit Dollar Limitation for the Participant’s annuity staring date is the annual amount of a benefit payable in the form of a straight life annuity commencing at the Participant’s annuity starting date that is the actuarial equivalent of the Defined Benefit Dollar Limitation (adjusted under Section 6.2(i)(i) for Years of Participation less than 10, if required) with actuarial equivalence computed using whichever of the following produces the smaller annual amount: (i) the interest rate specified in Section 2.3 of the Plan and the mortality table (or other tabular factor) specified in Section 2.3 of the Plan; or (2) a five percent (5%) interest rate assumption and the applicable mortality table as defined in Section 2.3(a) of the Plan.
|
(2)
|
Limitation Years Beginning on or After July 1, 2007. If the annuity starting date for the Participant’s benefit is after age 65 and occurs in a Limitation Year beginning on or after July 1, 2007, and the Plan does not have an immediately commencing straight life annuity payable at both age 65 and the age of benefit commencement, the Defined Benefit Dollar Limitation for the Participant’s annuity starting date is the annual amount of a benefit payable in the form of a straight life annuity commencing at the Participant’s annuity starting date that this the actuarial equivalent of the Defined Benefit Dollar Limitation (adjusted under Section 6.2(i)(i) for Years of Participation less than 10, if required) with actuarial equivalence computed using a five percent (5%) interest rate assumption and the applicable mortality table for the annuity starting date as defined in Section 2.3(a) of the Plan (and expressing the Participation’s age based on completed calendar months as of the annuity starting date).
|
(C)
|
Notwithstanding the other requirements of this Section 6.2(i)(ii), no adjustment shall be made to the Defined Benefit Dollar Limitation to reflect the probability of a Participant’s death between the annuity starting date and age 62, or between age 65 and the annuity starting date, as applicable, if benefits are not forfeited upon the death of the Participant prior to the annuity starting date. To the extent benefits are forfeited upon death before the annuity starting date, such an adjustment shall be made. For this purpose, no forfeiture shall be treated as occurring upon the Participant’s death if the Plan does not charge Participants for
|
(iii)
|
Minimum benefit permitted: Notwithstanding anything else in this Article VI to the contrary, the benefit otherwise accrued or payable to a Participant under the Plan shall be deemed not to exceed the Maximum Permissible Benefit if:
|
(A)
|
the retirement benefits payable for a Limitation Year under any form of benefit with respect to such Participant under the Plan and under all other defined benefit plans (regardless of whether terminated) ever maintained by the Employer do not exceed $10,000 multiplied by a fraction—(i) the numerator of which is the Participant’s number of Years of Service or parts thereof but not less than one year (not to exceed 10) with the Employer, and (ii) the denominator of which is 10; and
|
(B)
|
the Employer (or a Predecessor Employer) has not at any time maintained a defined contribution plan in which the Participant participated (for this purpose, mandatory employee contributions under a defined benefit plan, individual medical accounts under Section 401(h), and accounts for postretirement medical benefits established under Section 419A(d)(1) of the Code are not considered a separate defined contribution plan).
|
(j)
|
Predecessor Employer
: If the Employer maintains a plan that provides a benefit which the Participant accrued while performing services for a former employer, the former employer is a predecessor employer with respect to participation in the Plan. A former entity that antedates the Employer is also a Predecessor Employer with respect to a Participant if, under the facts and circumstances, the Employer constitutes a continuation of all or a portion of the trade or business of the former entity.
|
(k)
|
Severance from Employment
: An Employee has a severance from employment when the Employee ceases to be an Employee of the Employer maintaining the Plan. An Employee does not have a Severance from Employment if, in connection with a change of Employment, the Employee’s new employer maintains the Plan with respect to the Employee.
|
(l)
|
Year of Participation
: The Participant shall be credited with a Year of Participation (computed to fractional parts of a year) for each accrual computation period for which the following conditions are met: (1) the Participant is credited with at least the number of Hours of Service for benefit accrual purposes, required under the terms of the Plan in order to accrue a benefit for the accrual computation period, and (2) the Participant is included as a Participant under the eligibility provisions of the Plan for at least one day of the accrual computation period. If these two conditions are met, the portion of a Year of Participation credited to the Participant shall equal the amount of benefit accrual service credited to the Participant for such accrual computation period. A Participant who is permanently and totally disabled within the meaning of Section 415(c)(3)(c)(i) of the Code for an accrual computation period shall receive a Year of Participation with respect to that period. In addition, for a Participant to receive a Year of Participation (or part thereof) for an accrual computation period, the Plan must be established no later than the last day of such accrual computation period. In no event will more than one Year of Participation be credited for any twelve (12) month period.
|
(m)
|
Year of Service
: For purposes of Article VI, the Participant shall be credited with a Year of Service (computed to fractional parts of a year) for each accrual computation period for which the Participant is credited with at least the number of Hours of Service for benefit accrual purposes, required under the terms of the Plan in order to accrue a benefit for the accrual computation period, taking into account only service with the Employer or Predecessor Employer.
|
6.3
|
Funding-Based Limits.
|
7.1
|
Determination of Credited Service
. A Participant’s Credited Service shall be determined in accordance with the following:
|
(a)
|
For a Participant as of the Effective Date, who had been covered under the prior provisions of the Plan, the Participant’s Credited Service shall be determined in accordance with the provisions of the Plan in effect prior to the Effective Date.
|
(b)
|
Subject to Section 7.1(a), a Full-Time Employee shall accrue a full Year of Credited Service for each calendar year in which he is an Employee eligible to participate in the Plan under Section 3.1. In the year in which a Full-Time Employee is hired or terminated, the Participant shall be deemed to complete one/twelfth (1/12) of a year of Credited Service for each month employed, rounded to the nearest month. A Part-Time Employee shall be deemed to complete one/twelfth (1/12) of a year of Credited Service for each one hundred seventy-three and one/third (1731/3) Hours of Service completed while employed as a Part-Time Employee. For the year in which, with respect to a Participant, benefit accruals cease pursuant to the provisions of Section 4.2(d) or (e) or (g), a Participant who is a Full-Time Employee shall be deemed to complete one-twelfth (1/12) of a year of Credited Service for each month employed through the effective date of the cessation of benefit accruals, and no Participant described in Section 4.2(d) or (e) or (g) shall accrue additional Credited Service for periods thereafter.
|
(c)
|
Credited Service will not include a period of time a Participant is on an Authorized Leave of Absence for other than medical or military reasons, is on layoff status or while employed with an Affiliate or Subsidiary which is not an Employer.
|
(d)
|
Prior Service with a Predecessor Corporation may, at the discretion of the Administrative Committee, be deemed to be Credited Service.
|
(e)
|
In the event a Participant who has completed ten (10) or more Years of Service becomes a Disabled Participant, the period of disability up to the Participant’s Normal Retirement Date shall be counted as Credited Service regardless of whether the Participant remains in the employ of an Employer.
|
(f)
|
A Participant shall in no event be deemed to accrue more than one (1) full Year of Credited Service with respect to any Year.
|
(g)
|
If the Participant was an Employee of the Employer, terminated his Employment and is rehired, the following rules shall apply in determining his Credited Service:
|
(i)
|
In the case of a Participant who had five (5) or more Years of Service or who terminated Employment after his Normal Retirement Date, his Credited Service accrued during his prior period of Employment shall be reinstated as of the date of his re-employment.
|
(ii)
|
In the case of a Participant whose Employment terminated before completing five (5) Years of Service and before his Normal Retirement Date, his Years of Credited Service accrued during his prior period of Employment shall be reinstated unless the “Break-in-Service” exceeds the greater of: (i) five (5) years, or (ii) the number of prior Years of Service.
|
(h)
|
Years of Service with an Affiliate or Subsidiary which does not participate in the Plan will not be included as Credited Service.
|
(i)
|
Notwithstanding any other provision of this Section 7.1, Years of Service or other periods of employment with a Strategic Business Unit whose employees are not active Participants accruing benefits under Section 4.2 will not be included as Credited Service.
|
8.1
|
Normal Form of Payment
. The retirement income to which a Participant may be entitled at his Normal Retirement Date shall be payable in the following method unless the Participant elects one of the optional forms of payment provided for in Section 8.2.
|
(a)
|
The retirement income payable to a Participant who does not have an Eligible Spouse on the date payments commence shall be in the form of a lifetime income amount calculated in accordance with Section 4.2.
|
(b)
|
The retirement income payable to a Participant who has an Eligible Spouse on the date payments commence shall be in the form of a Surviving Spouse Option with his Eligible Spouse as the survivor, subject to the following:
|
(i)
|
Under a Surviving Spouse Option, a reduced amount shall be paid to the Participant for his lifetime, and his Eligible Spouse, if surviving at the Participant’s death, shall be entitled to receive thereafter a lifetime benefit equal to fifty percent (50%) of the reduced benefit which had been payable to the Participant. The amount of the reduced benefit payable to the Participant and Survivor shall be the Actuarial Equivalent of the lifetime benefit as determined in Section 4.2.
|
(ii)
|
Within the twelve (12) month period prior to his Normal Retirement Date, or at the time he applies for retirement income payments to commence, if earlier, or if requested by the Participant eligible for Early Retirement, each Participant must certify to the Administrative Committee, on a form and in a manner prescribed by the Administrative Committee whether or not he is married, and if so, the name and date of birth of the person to whom he is married and the date of the marriage. The Participant will notify the Administrative Committee of any changes in his status prior to retirement.
|
(iii)
|
Within a reasonable period (but in no event more than 180 days prior to the annuity starting date) following receipt of the certification specified in (ii) above, from a Participant who certifies that he will be married at the time his retirement income payments are to commence, the Administrative Committee shall furnish him a written explanation of the Surviving Spouse Option and an estimate of the amounts of retirement income payable both under that option and all other options. Such explanation shall include a description of how much larger benefits will be if the commencement of distributions is deferred.
|
(iv)
|
At the time such explanation is furnished to the Participant, an election form will also be furnished to him. The Participant must complete such form and return it to the Administrative Committee within the 180-day period ending on the date as of which his retirement income payments are to commence. The Participant may elect to waive the otherwise applicable election period described above and commence distribution of his benefit on a date that is more than seven (7) days after the election form is furnished to him. The election form shall allow the Participant to elect (a) to revoke the Surviving Spouse Option or (b) to elect to be covered under the option, in which case he must submit satisfactory proof of the date of his spouse’s birth and of their marriage if such has not previously been submitted to the Administrative Committee. A Participant who fails to so complete and return the election form in a timely manner shall be deemed to have elected to be covered under the Surviving Spouse Option.
|
(v)
|
If a Participant revokes the Surviving Spouse Option, he may nevertheless cancel such revocation at any time prior to the first (1st) day of the month for which his retirement income payments are to commence by completing the appropriate form and submitting it to the Administrative Committee; otherwise retirement income shall be paid in the form of a lifetime income unless an optional form is elected in accordance with Section 8.3. If a
|
(vi)
|
If a vested Participant who has not revoked the Surviving Spouse Option dies on or after his Early Retirement Date, he will be deemed to have retired on the first (1st) day of the month coincident with or following the date of his death or retirement, whichever occurs first, and retirement income shall be paid to his Eligible Spouse in the form of a Surviving Spouse Option.
|
(vii)
|
If a vested Participant who has not revoked the Surviving Spouse Option dies before his Early Retirement Date, he will be deemed to have:
|
(A)
|
terminated Employment on the date of death (unless he had terminated Employment prior to his death),
|
(B)
|
survived to this Early Retirement Date, and
|
(C)
|
retired with an immediate Surviving Spouse Option.
|
(viii)
|
Subject to retroactive payment thereof, any retirement income payments otherwise due under the Plan may be delayed until thirty (30) days after the latest of whichever of the following are applicable:
|
(A)
|
The receipt by the Administrative Committee of the certification specified in (ii) above;
|
(B)
|
The receipt by the Administrative Committee of the completed election form furnished in accordance with (iv) above; or
|
(C)
|
The receipt by the Administrative Committee of satisfactory proof of the marriage and date of birth of the Eligible Spouse of a Participant who elects or is deemed to have elected the Surviving Spouse Option.
|
(ix)
|
The election of the Surviving Spouse Option shall be null and void if the Participant’s spouse should die within thirty (30) days after the latest date on which the Participant may make a timely return of the election form pursuant to (iv) above.
|
8.2
|
Optional Forms of Payment
. A Participant may elect, at any time prior to 180 days preceding the commencement of his retirement income, by giving written notice on a form and in a manner prescribed by the Administrative Committee, to convert the amount of retirement income payable to him under the normal form of payment into the Actuarial Equivalent under one of the following options:
|
(a)
|
Lifetime Income Option
. Under this option retirement income will cease at the death of the Participant.
|
(b)
|
Joint and Survivor Option
. Under this option, a Participant can elect to receive a reduced income, but after the Participant’s death, fifty percent (50%), seventy-five percent (75%) or one hundred percent (100%) (depending upon the election made) of such reduced income shall be paid for life to his Eligible Spouse or his designated Joint Annuitant.
|
(c)
|
Ten (10) Year Certain Option
. Under this option, the Participant can elect to receive a reduced income, but in the event of his death prior to one hundred
|
(d)
|
Level Income Option
. A Participant electing an Early Retirement Date which is prior to the date when he is eligible to receive Social Security benefits may elect to receive an increased monthly payment from the Plan continuing until he is eligible to receive Social Security Benefits, whereupon his monthly payment from the Plan will be decreased. The amount of increase and decrease will be determined in accordance with appropriate Actuarial Equivalent factors based on the Participant’s expected Social Security Benefits as of his Early Retirement Date so that his total monthly retirement income from this retirement date shall be approximately level.
|
8.3
|
Election Procedure
.
|
(a)
|
An election may not be made nor will it be accepted by the Administrative Committee, or if accepted it shall become null and void, if the Participant’s Employment terminates prior to his Early Retirement Date.
|
(b)
|
If a Participant shall validly elect a Surviving Spouse Option or a Joint and Survivor Option and shall retire on an Early or Normal Retirement Date, his election shall be effective on such retirement date, provided both the Participant and Joint Annuitant are then alive. If the Joint Annuitant shall die before such retirement date, the election shall be of no effect.
|
(c)
|
If a Participant shall elect a Surviving Spouse Option or a Joint and Survivor Option and shall remain in the service of the Company after his Normal
|
(i)
|
if his Joint Annuitant dies before such Participant retires, such Participant shall be entitled after retiring to receive only the reduced retirement income payable to him in accordance with such option; and
|
(ii)
|
if such Participant dies before retiring, his Joint Annuitant shall receive the reduced income which would be payable to such Joint Annuitant in accordance with such option, as if such Participant had retired on the first day of the month coinciding with or next preceding his date of death.
|
(d)
|
If a Participant shall elect a Surviving Spouse Option or a Joint and Survivor Option and his Joint Annuitant shall die before the death of, but after the retirement of, the Participant, such Participant shall continue to receive the reduced retirement income payable to him in accordance with such option.
|
(e)
|
If a Participant shall validly elect a ten (10) year certain option and shall remain in the service of the Company after his Normal Retirement Date, and if such Participant shall die before retiring, his Beneficiary shall receive the reduced retirement income for the guaranteed period elected in accordance with this option as if the Participant had retired on the first day of the month coinciding with or next preceding his date of death.
|
(f)
|
Notwithstanding anything to the contrary contained herein, if the Joint Annuitant is other than the Participant’s Eligible Spouse, the present value of the payments made and to be made to a Participant under any of the optional forms of income cannot be less than fifty percent (50%) of the present value of the total payments to be made to the Participant and his Joint Annuitant. In such event, the optional form elected shall be adjusted to satisfy the fifty percent (50%) requirement referred to above.
|
8.4
|
Minimum Required Distributions
.
|
(a)
|
The distribution of benefits shall be made in accordance with Section 401(a)(9) of the Code and Treasury Regulations issued thereunder on June 15, 2004.
|
(i)
|
Determination of Amount to be Distributed Each Year.
|
(A)
|
General Annuity Requirements. If a Participant’s benefit is paid in the form of an annuity, payments under the annuity shall satisfy the following requirements:
|
(1)
|
The annuity distributions shall be paid in periodic payments made at intervals not longer than one year;
|
(2)
|
The distribution period shall be over a life (or lives) or over a period certain not longer than the period described in subsection (b) or (c); and
|
(3)
|
Payments shall either be nonincreasing or increase only as permitted under Q&A-14 of Regulation section 1.401(a)(9)-6.
|
(B)
|
Amount Required to be Distributed by Required Beginning Date. The amount that must be distributed on or before the Participant’s Required Beginning Date (or, if the Participant dies before distributions begin, the date distributions are required to begin under subsection (c)(v) is the payment that is required for one payment interval. The second payment need not be made until the end of the next payment interval even if that payment interval ends in the next calendar year. Payment intervals are the periods for which payments are received, e.g., bi-monthly, monthly, semi-annually, or annually. All of the Participant’s benefit accruals as of the last day of the first Distribution Calendar Year shall be included in the calculation of the amount of the annuity payments for
|
(C)
|
Additional Accruals after First Distribution Calendar Year. Any additional benefits accruing to the Participant in a calendar year after the first Distribution Calendar Year shall be distributed beginning with the first payment interval ending in the calendar year immediately following the calendar year in which such amount accrues.
|
(ii)
|
Requirement for Joint Life Annuities that Commence During Participant’s Lifetime Where the Co-Annuitant is not the Participant’s Spouse. If the Participant’s benefit is being distributed in the form of a survivor annuity for the joint lives of the Participant and a non-spouse co-annuitant, annuity payments to be made on or after the Participant’s Required Beginning Date to such co-annuitant after the Participant’s death must not at any time exceed the applicable percentage of the annuity payment for such period that would have been payable to the Participant using the table set forth in Q&A-2 of Regulation section 1.401(a)(9)-6. The applicable percentage is based on the adjusted Participant/co-annuitant age difference. The adjusted Participant/co annuitant age difference is determined by first calculating the excess of the age of the Participant over the age of the co-annuitant based on their ages on their birthdays in a calendar year. If the Participant is younger than age 70, the age difference determined in the previous sentence is reduced by the number of years that the Participant is younger than age 70 on the Participant’s birthday in the calendar year that contains the Benefit Commencement Date. In the case of an annuity that provides for increasing payments, the requirement of this subsection (ii) will not be violated merely because benefit payments to the co-annuitant increase, provided the increase is determined in the same manner for the Participant and the co-annuitant.
|
(iii)
|
Requirements for Minimum Distributions Where Participant Dies Before Date Distributions Begin.
|
(A)
|
Participant Survived by Designated Beneficiary. Except as provided in subsection (b), if the Participant dies before the date distribution of his or her benefit begins and there is a Designated Beneficiary, the Participant’s benefit shall be distributed, beginning no later than the time described in subsection (c)(v), over the life of the Designated Beneficiary or over a period certain not exceeding:
|
(1)
|
Unless the Benefit Commencement Date is before the first Distribution Calendar Year, the Life Expectancy of the Designated Beneficiary determined using the Designated Beneficiary’s age as of the Designated Beneficiary’s birthday in the calendar year immediately following the calendar year of the Participant’s death; or
|
(2)
|
If the Benefit Commencement Date is before the first Distribution Calendar Year, the Life Expectancy of the Designated Beneficiary determined using the Designated Beneficiary’s age as of the Designated Beneficiary’s birthday in the calendar year that contains the Benefit Commencement Date.
|
(B)
|
No Designated Beneficiary. If the Participant dies before the date distributions begin and there is no Designated Beneficiary as of September 30 of the year following the year of the Participant’s death, distribution of the Participant’s entire vested benefit shall be completed by December 31 of the calendar year containing the fifth anniversary of the Participant’s death.
|
(C)
|
Death of Surviving Spouse Before Distributions to Surviving Spouse Begin. If the Participant dies before the date distribution of his or her vested benefit begins, the Participant's surviving spouse is the Participant’s sole Designated Beneficiary, and the surviving spouse dies before distributions to the surviving spouse begin, this subsection shall apply as if the surviving spouse were the Participant, except that the time by which distributions must begin will be determined without regard to subsection (c)(v)(A).
|
(iv)
|
Minimum Required Distributions Made or Commencing Prior to January 1, 2003. Notwithstanding anything in the Plan to the contrary, the distribution of benefits under the Plan shall be made in accordance with Section 401(a)(9) of the Code and the Regulations, including the minimum distribution incidental benefit requirement of Regulation section 1.401(a)(9)-2. Distributions made or commencing under this subsection to a Participant who has not yet terminated employment with the Employer shall be limited to the minimum required distributions pursuant to Section 401(a)(9) of the Code as in effect on December 31, 1995. The Plan Administrator shall adopt appropriate rules to reduce the benefits paid under the Plan after the Participant terminates employment in order to reflect the distributions made while the Participant was still employed.
|
(b)
|
Elections.
|
(i)
|
Election to Apply 5-Year Rule to Distributions to Designated Beneficiaries. If the Participant dies before distributions begin and there is a Designated Beneficiary, distribution to the Designated Beneficiary is not required to begin by the date specified in subsection (c)(v), but the Participant’s entire vested interest in the Plan shall be distributed to the Designated Beneficiary by December 31 of the calendar year containing the fifth anniversary of the Participant’s death. Participants or Designated
|
(ii)
|
Election to Allow Designated Beneficiary Receiving Distributions Under 5-Year Rule to Elect Life Expectancy Distributions. A Designated Beneficiary who is receiving payments under the 5 year rule described in subsection (a) above may make a new election to receive payments under the life expectancy rule until December 31, 2003, provided that all amounts that would have been required to be distributed under the life expectancy rule for all Distribution Calendar Years before 2004 are distributed by the earlier of December 31, 2003 or the end of the 5-year period.
|
(iii)
|
Election under TEFRA Section 242(b)(2). Notwithstanding any provision in this Article VIII to the contrary, distributions under the Plan may be made under a designation made before January 1, 1984, in accordance with Section 242(b)(2) of the Tax Equity and Fiscal Responsibility Act (TEFRA).
|
(c)
|
Definitions. For purposes of this Article, the following rules and definitions shall apply:
|
(i)
|
“Designated Beneficiary” means the individual who is designated as the Beneficiary under the Plan and is the Designated Beneficiary under Section 401(a)(9) of the Code and Section 1.401(a)(9)-1, Q&A-4 of the Treasury Regulations.
|
(ii)
|
“Distribution Calendar Year” means a calendar year for which a minimum distribution is required. For distributions beginning before the Participant’s death, the first Distribution Calendar Year is the calendar year immediately preceding the calendar year that contains the Participant’s Required Beginning Date. For distributions beginning after the Participant’s death, the first Distribution Calendar Year is the calendar year in which distributions are required to begin under subsection (v) below.
|
(iii)
|
“Life Expectancy” means life expectancy as computed by use of the Single Life Table in Regulation section 1.401(a)(9)-9.
|
(iv)
|
“Required Beginning Date” means:
|
(A)
|
April 1 of the calendar year following the calendar year in which the Participant attains age 70½ or, if later, April 1 of the calendar year following the calendar year in which the Participant terminates employment with the Employer; and
|
(B)
|
April 1 of the calendar year following the calendar year in which the Participant attained age 70½ in the case of a Participant who attained age 70½ prior to 1999.
|
(i)
|
Commencement Date in the Event of Death of Participant Before Distributions Begin. If a Participant dies before distributions begin, the
|
(A)
|
If in the form of a Qualified Pre-retirement Survivor Annuity, Distributions to a surviving spouse shall begin by December 31 of the calendar year immediately following the calendar year in which the Participant died, or by December 31 of the calendar year in which the Participant would have attained age 70-1/2, if later.
|
(B)
|
Distributions to a beneficiary other than a surviving spouse or to the surviving spouse in a form other than the Qualified Pre-retirement Survivor Annuity shall begin by December 31 of the calendar year immediately following the calendar year in which the Participant died.
|
8.5
|
Suspension of Benefits
.
|
(a)
|
Reemployment Prior to Normal Retirement Age
. If a retired Participant is again employed by the Employer prior to his Normal Retirement Age, his retirement income hereunder shall be suspended during the period of such reemployment and the retirement income to which he is entitled when he again retires hereunder shall be actuarially adjusted to take account of any benefit payments previously received by the Participant. To determine the adjustment, the present value of the benefits already paid will be converted to an annuity payable in the automatic form of payment for an unmarried Participant at Normal Retirement Date and subtracted from the Accrued Benefit so determined under Section 4.2 without regard to the prior benefit payments. In no event, however, may the benefit be less than his original retirement benefit. If such benefits have been paid in a lump sum in accordance with the terms of the Plan and if the Participant is subsequently reemployed by the Employer, he shall not accrue any benefits for service prior to his reemployment date unless such lump sum is repaid to the Trust Fund, with interest at five percent (5%) per annum.
|
(b)
|
Continued Employment after Normal Retirement Date
. Subject to the mandatory commencement provisions, if a Participant postpones his or her retirement beyond his or her Normal Retirement Age, the payment of such Participant’s retirement benefit shall be suspended during each calendar month in which the Participant completes forty (40) or more Hours of Service (except for Hours of Service credited as a result of back pay) for the Employer or Affiliate.
|
(c)
|
Notice of Suspension of Benefits
. During the first calendar month in which a Participant’s benefits are suspended under the above paragraph (b) of this Section 8.5, the Administrative Committee shall deliver to the Participant, by personal delivery or first class mail, a notice setting forth the following:
|
(i)
|
a description of the specific reasons why benefit payments are being suspended;
|
(ii)
|
a general description of the Plan provisions relating to the suspension of benefits;
|
(iii)
|
a copy of the Plan provisions relating to the suspension of benefits;
|
(iv)
|
the statement that “Applicable Department of Labor Regulations may be found in Section 2530.203-3 of the Code of Federal Regulations”;
|
(v)
|
a description of the procedures set forth in the Plan for obtaining a review of the suspension of benefits; and
|
(vi)
|
a description of any notice procedure (including any forms which must be filed by the Participant) as a prerequisite for the Participant’s obtaining the resumption of benefit payments.
|
(d)
|
Resumption of Benefits
. If, during a calendar month, a Participant’s benefit payments are no longer suspendible pursuant to Section 8.5(b), the benefit payments to the Participant shall resume no later than the first (1st) day of the third (3rd) calendar month after such calendar month. The initial payment upon resumption shall include the payment scheduled to occur in the calendar month when payments resume and any amounts withheld during the period between the cessation of employment and the resumption of payments, less any offset for payment when benefits should have been suspended.
|
(e)
|
Procedure for Review of Suspension of Benefits
. If a Participant submits a written request to the Administrative Committee for a review of the suspension of his or her benefits, such request shall be deemed to be a request for a review of the denial of a claim for benefits for purposes of the benefit claims procedure set forth in Section 9.4.
|
(f)
|
Procedure for Status Determination
. If a Participant submits a written request to the Administrative Committee for a determination whether specific contemplated employment will result in the suspension of benefits, the Administrative Committee shall, within thirty (30) days of the receipt of such request, notify the Participant in writing whether said employment will result in suspension of benefits.
|
8.6
|
Direct Rollovers
.
|
(a)
|
Notwithstanding any provisions of the Plan to the contrary that would otherwise limit a distributee’s election under this Section, a distributee may elect, at the time
|
(b)
|
Definitions
.
|
(i)
|
“Eligible rollover distribution”: An eligible rollover distribution is any distribution of all or any portion of the balance to the credit of the distributee, except that an eligible rollover distribution does not include: any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the distributee or the joint lives (or joint life expectancies) of the distributee and the distributee’s designated beneficiary, or for a specified period of ten (10) years or more; any distribution to the extent such distribution is required under Section 401(a)(9) of the Code; a hardship distribution; or the portion of any distribution that is not includible in gross income (determined without regard to the exclusion for net unrealized appreciation with respect to employer securities), except that an eligible rollover distribution shall include the portion that is not includable in gross income if the distribution is transferred in a direct trustee-to-trustee transfer to an individual retirement account or annuity described in Section 408(a) of (b) of the Code, a qualified defined benefit or defined contribution plan described in Section 401(a) or 403(a) of the Code, or an annuity contract described in Section 403(b) of the Code, which agrees to separately account for amounts so transferred, including separately accounting for the portion of such distribution which is includable in gross income and the portion of such distribution which is not includable.
|
(ii)
|
“Eligible retirement plan”: An eligible retirement plan is an individual retirement account described in Section 408(a) of the Code, and individual
|
(iii)
|
“Distributee”: A distributee includes an Employee or former Employee. In addition, the Employee’s or former Employee’s surviving spouse and the Employee’s or former Employee’s spouse or former spouse who is the alternate payee under a qualified domestic relations order (qdro), as defined in Section 414(p) of the Code, are distributees without regard to the interest of the spouse or former spouse. A distribute also includes the Participant’s nonspouse designated Beneficiary. In the case of a nonspouse beneficiary, the direct rollover may be made only to an individual retirement account or annuity described in Section 408(a) or Section 408(b) (“IRA”) that is established on behalf of the designated beneficiary and that will be treated as an inherited IRA pursuant to the provisions of Section 402(c)(11). Also, in this case, the determination of any required minimum distribution under Section 401(a)(9) of the Code that is ineligible for rollover shall be made in accordance with Notice 2007-7, Q&A 17 and 18.
|
(iv)
|
“Direct rollover”: A direct rollover is a payment by the Plan to the eligible retirement plan specified by the distributee.
|
(v)
|
“Non-Spousal Rollovers”: A distributee who is a designed beneficiary (as defined in Section 401(a)(9)(E) of the Code) of a deceased Participant and who is not the deceased Participant’s surviving Spouse (a “nonspousal beneficiary”) may elect, at the time and in the manner prescribed by the Administrator, to have any amount payable to him or her paid directly in a direct rollover. The amount to be distributed in the direct rollover must satisfy all of the requirements to be an eligible rollover distribution other than the requirement that the distribution be made to the Participant or the Participant’s Eligible Spouse and must be paid in a direct trustee-to-trustee transfer to an individual retirement plan described in Section 402(c)(8)(B)(i) or (ii) of the Code that is established for the purposes of receiving the distribution on behalf of the nonspousal beneficiary.
|
9.1
|
Administrative Committee
. All usual and reasonable expenses of the Administrative Committee will be paid by the Employer. No member of the Administrative Committee shall receive any compensation for his service on the Administrative Committee.
|
9.2
|
Agents of the Administrative Committee
. The Administrative Committee may: elect a secretary who may, but need not, be one of the members of the Administrative Committee; appoint from their number such committees with such powers as they shall determine; authorize one or more of the members, or any agent, to execute or deliver any instrument or to make any payment on their behalf; and employ counsel, agents, and such clerical, accounting and actuarial services as they might require in carrying out the provisions of the Plan.
|
9.3
|
Procedures
. The Administrative Committee may from time to time establish rules and procedures for the administration of the Plan. All rules, procedures and decisions of the Administrative Committee shall be uniformly and consistently applied to all Participants in similar circumstances. Such rules, procedures and decisions so made shall be conclusive and binding on all persons having an interest in the Plan.
|
9.4
|
Claims Procedures
. The Office of the Senior Vice President Human Resources (the “Claims Administrator”) shall make all initial determinations as to the right of any person to a benefit. If any application for payment of a benefit under the Plan shall be denied, the Claims Administrator shall notify the claimant within ninety (90) days of such application setting forth the specific reasons therefor and shall afford such claimant a reasonable opportunity for a full and fair review of the decision denying his or her claim. If special circumstances require an extension of time for processing the claim, the claimant will be furnished with a written notice of the extension prior to the termination of the initial ninety (90) day period. In no event shall such extension exceed a period of ninety (90) days from the end of such initial period. The extension notice shall indicate the special circumstances requiring an extension of time and the date by which the
|
(a)
|
reference to pertinent provisions of the Plan;
|
(b)
|
such additional information as may be relevant to the denial of the claim;
|
(c)
|
an explanation of the claims review procedure; and
|
(d)
|
notice that such claimant may request the opportunity to review pertinent Plan documents and submit a statement of issues and comments.
|
9.5
|
Benefit Payments from Trust
. The Administrative Committee shall cause benefits to be paid from the Trust Fund pursuant to the provisions of the Plan.
|
9.6
|
Payment to Incompetents
. Whenever, in the Administrative Committee’s opinion, a person entitled to receive benefits under the Plan is under legal disability or is incapacitated in any way so as to be unable to manage his financial affairs, the Administrative Committee may direct the payments becoming due to such person to be made to another for his benefit without responsibility of the Administrative Committee or the Trustee to see to the application of such payment. Payments made pursuant to such power shall be a complete discharge of any liability for making such payment under the provisions of the Plan.
|
9.7
|
Powers of Administrative Committee
. The Administrative Committee shall have the full power and discretionary authority to administer the Plan in all of its details, subject to the requirements of ERISA. The Administrative Committee shall have the authority to construe the terms of the Plan, including the authority to remedy any omissions, ambiguities, or inconsistencies in the provisions of the Plan, and to resolve all questions arising under the Plan or in the administration of the Plan. Whenever, in the administration of the Plan, any discretionary action by the Administrative Committee is required, the Administrative Committee shall exercise its authority in a nondiscriminatory manner so that all persons similarly situated will receive substantially the same treatment. The Administrative Committee’s decision or actions shall be conclusive and binding upon all Participant’s and their beneficiaries, heirs, assigns, administrators, executors, and any other person claiming through them, in absence of clear and convincing evidence that the Administrative Committee acted arbitrarily and capriciously.
|
9.8
|
Special Powers
. Without limiting the general discretionary authority of the Administrative Committee, the Administrative Committee’s powers include the power:
|
(a)
|
To construe and interpret the Plan, decide all questions of eligibility and determine the amount, manner, and time of payment of any benefit hereunder.
|
(b)
|
To prescribed rules, procedures and forms to be followed regarding the administration of the Plan.
|
(c)
|
To receive, review and keep on file (as it deems convenient or proper) reports of the financial condition, and of the receipts and disbursements, of the Trust, and a copy of the Plan including any amendments thereto.
|
(d)
|
To comply with requirements of ERISA and all other government requirements.
|
(e)
|
To appoint and remove (1) a person or persons with responsibility for reporting and disclosure under the Code or any other applicable law; (2) attorneys and others to represent them before any court or governmental agency; (3) an investment manager or managers with exclusive authority and discretion to manage, acquire and dispose of part or all of the assets of the Plan; (4) an insurer or insurers; and (5) such other agents as may be required to assist in administering the Plan;
|
(f)
|
To authorize one of its member to execute written instruments setting forth the Plan or any amendments to the Plan duly adopted by the Board or the Committee in accordance with Section 12.1;
|
(g)
|
To establish a funding policy and method for the Plan, in each case consistent with the objectives of the Plan and consistent with ERISA, and to provide procedures for carrying them out;
|
(h)
|
To approve administrative expenses of the Plan and Trust to be paid from the Trust under Section 10.1;
|
(i)
|
To allocate responsibilities among themselves; and
|
(j)
|
To delegate its fiduciary responsibilities under the Plan, such delegation to be by written instrument in accordance with Section 405 of ERISA.
|
9.9
|
Use of Outside Specialists
. The Administrative Committee shall be entitled to rely conclusively upon all tables, valuations, certificates, opinions and reports which shall be furnished by an Actuary, accountant, controller, counsel or other person who shall be employed or engaged for such purposes.
|
9.10
|
Power of Named Fiduciaries
. The Named Fiduciaries shall have only those specific powers, duties, responsibilities and obligations as they are specifically given under the Plan. In general, the Employers shall have the sole responsibility for making contributions provided under Section 10.3. The Administrative Committee shall have the sole responsibility for the administration of the Plan in accordance with the procedures set forth in the Plan and shall have the power to amend the Plan (except as otherwise provided in Section 12.1). The Trustee shall have the responsibility for the administration of the Trust and the management of the Trust Assets held under the Trust as specifically provided for in the Trust. The Administrative Committee may appoint and remove Investment Managers as provided in the Trust Agreement. The Investment Manager(s) shall have the exclusive authority to manage (including the power to acquire and dispose of) all assets of the Trust placed under its management by the Administrative Committee in accordance with the terms of the agreement with the applicable Investment Manager. Each Named Fiduciary shall warrant that any directions given, information furnished, or action taken by it shall be in accordance with the provisions of the Plan or the Trust, as the case may be, authorizing or providing for such direction, information or action. Furthermore, each Named Fiduciary may rely upon such direction, information, or action of another Named Fiduciary as being proper under the Plan or the Trust, and is not required under the Plan or the Trust to inquire into the propriety of any such direction, information or action. It is intended under the Plan and the Trust that each Named Fiduciary shall be responsible for the proper exercise of its own powers, duties, responsibilities and obligations under the Plan and the Trust and shall not be responsible for any act or failure to act of the Company or another Named Fiduciary. No Named
|
9.11
|
Indemnification
. To the extent that the Administrative Committee, or directors, officers and employees of the Company or of a participating Employer who serve on or on behalf of the Administrative Committee or otherwise as plan fiduciaries are not protected and held harmless by or through insurance, the Company indemnifies and saves harmless the Administrative Committee, and any director, officer or employee of the Company or of a participating Employer who serves on or on behalf of the Administrative Committee or otherwise as a plan fiduciary, from and against any and all loss resulting from liability to which the Administrative Committee, director, officer or employee, may be subjected by reason of any act or conduct (except willful misconduct or gross negligence) in connection with the Plan or Trust Fund or both, including reasonable attorneys’ fees and amounts paid in settlement of any claims approved by the Company.
|
10.1
|
Trust
. The Company (for itself and other Employers), shall enter into one or more agreements for the administration of the Trust Fund, in such form and containing such provisions as are appropriate. All assets of the Trust Fund shall be retained for the exclusive benefit of Participants, Joint Annuitants and Beneficiaries and shall be used to pay benefits to such persons or to pay administrative expenses of the Plan and Trust Fund (to the extent not paid by the Employer) and shall not revert to or inure to the benefit of the Employer, except to the extent provided in Sections 10.2 and 12.3.
|
10.2
|
Return of Contributions
. Upon an Employer’s request, a contribution which was made by a mistake of fact, or conditioned upon the deductibility of the contribution under Section 404 of the Code, shall be returned to the Employer within one (1) year after the payment of the contributions or the disallowance of the deduction (to the extent disallowed), whichever is applicable. All contributions made to the Trust Fund shall be conditioned upon their deductibility under the Code.
|
10.3
|
Contributions
. No contributions shall be required under the Plan from any Participant. The Employer(s) shall contribute over a period of time such amounts as may be determined by actuarial calculations to provide retirement income pursuant to the terms of the Plan. Such calculations shall be made by the Actuary appointed by the Administrative Committee.
|
11.1
|
Establishment of Retiree Health Plan
.
|
(a)
|
There is created, established and maintained under the Plan a separate account known as the Retiree Health Plan Account. The Trustee and Administrative Committee agree to hold and administer the Retiree Health Plan Account, and to receive contributions hereto, for the purpose of providing for the payment of certain medical expenses pursuant to Section 401(h) of the Code, for Covered Retirees and their Covered Dependents (as such terms are defined below). The separate account shall be for recordkeeping purposes only. Funds contributed to the Retiree Health Plan Account may be invested without identification of which investments are allocable to the Retiree Health Plan Account.
|
(b)
|
(i) No part of the income or corpus of the Retiree Health Plan Account shall be (either within the taxable year of contribution or thereafter) used for, or diverted to, any purpose (including the provision of any retirement benefits provided under the Plan) other than the provision of Medical Benefits, at any time prior to the satisfaction of all liabilities under the Plan with regard to the payment of Medical Benefits in accordance with this Section. Notwithstanding the above, the payment of any necessary or appropriate expenses attributable to the administration of the Retiree Health Plan Account may be made from the income or corpus of such account.
|
(c)
|
Notwithstanding the foregoing, no Medical Benefits shall be payable to any person, who is, or ever has been, a Key Employee as defined in Section 14, or his Covered Dependents.
|
11.2
|
Definitions
. Whenever used in the Plan, the following terms shall have the meaning set forth below unless otherwise clearly required by the context:
|
(a)
|
“Covered Dependent” shall mean a Covered Retiree’s dependent who meets the conditions for coverage under the PerkinElmer, Inc. Retiree Health Plan. In no event will the term Covered Dependent include any person who is an eligible Covered Retiree himself or any person who is employed full-time with the Employer. If both parents of any Covered Dependent child are eligible Covered Retirees, the Covered Dependent child shall be considered as a Covered Dependent of only one of the Covered Retirees.
|
(b)
|
“Covered Retiree” shall mean a Retired Participant who has completed at least ten (10) Years of Service on his Normal or Early Retirement Date. In no event shall a Covered Retiree include a person not covered under the PerkinElmer, Inc. Retiree Health Plan, nor a person who is or ever was a Key Employee.
|
(c)
|
“Medical Benefits” shall mean, with respect to a Covered Retiree, a percentage of the Per Capita Retiree Health Cost, such percentage being equal to three thousand, four hundred dollars ($3,400) as indexed from time to time) divided by the Per Capita Retiree Health Cost, but in no event in excess of one hundred percent (100%) of such cost.
|
(d)
|
“Per Capita Retiree Health Cost” for any year shall mean the total annual Employer cost of claims under the PerkinElmer, Inc. Retiree Health Plan, divided by the number of retired employees covered under that plan at any time during that year.
|
(e)
|
“PerkinElmer, Inc. Retiree Health Plan” shall mean the PerkinElmer, Inc. health plan, as it relates to retired persons, as it shall be amended from time to time, and the provisions of such Plan shall be incorporated by reference herein.
|
(f)
|
“Retired Participant” shall mean an individual who was an active Participant under the Plan until his Early, Normal or Postponed Retirement Date and who retires from Employment with the Employer and is thereupon immediately eligible to receive retirement benefits hereunder.
|
11.3
|
Election to Continue Coverage
. If a Covered Dependent loses coverage as a result of the death or divorce of a Covered Retiree, such Covered Dependent shall have coverage continuation rights as shall be provided under the Retiree Health Plan, and the provisions of such continuation coverage shall be incorporated by reference with respect to benefits under the Retiree Health Plan Account created hereunder. Because such continuation coverage shall be provided under the Retiree Health Plan at the Covered Dependent’s expense, no further benefits will be paid from the Retiree Health Plan Account with respect to such Covered Dependents.
|
11.4
|
Funding Method and Policy
. All contributions to fund benefits provided under this Section shall be made by the Employer, except those relating to Continuation Coverage. Subject to the restrictions of this Section, the Employer shall contribute to the Retiree Health Plan Account annually an amount which is reasonably estimated to cover the total cost of the benefits to be provided hereunder and which satisfies the general requirements applicable to deductions allowable under Section 404 of the Code (as set forth in Treasury Regulations 1.404(a)-3(f)). The total cost of providing Medical Benefits shall be determined in accordance with any generally accepted actuarial method which is reasonable in view of the provisions and coverage of the Plan, the funding medium, and other applicable considerations.
|
11.5
|
Subordination to Retirement Benefits
. It is intended that the Medical Benefits provided under this Section be subordinate at all times to the retirement benefits provided under the Plan. Therefore, the aggregate of contributions (made after the effective date of
|
11.6
|
Benefits Provision
. The benefits payable pursuant to this Section shall be limited to the payment of Medical Benefits for Covered Retirees and their Covered Dependents. The Medical Benefits provided under this Section and the Employer contributions to fund said Benefits shall not discriminate in favor of the highly compensated employees of the Employer within the meaning of Section 414(q) of the Code.
|
11.7
|
Coordination with Retiree Health Plan
. Benefits under the Plan shall be provided by reimbursing annually the Employer or other paying agent under the PerkinElmer, Inc. Retiree Health Plan for the percentage of the Per Capita Retiree Health Cost, as defined under Section 11.2(d) for each Covered Retiree.
|
11.8
|
Reservation of the Right to Terminate Benefits
. The Employer reserves the right to amend or terminate the Medical Benefits provided hereunder or the Retiree Health Plan at any time. In such event, assets in the Medical Benefit Account shall be used to provide the Medical Benefits provided hereunder, both to Covered Retirees and those Participants who at the date of termination subsequently become Covered Retirees, but only to the extent assets remain in such account. After the satisfaction of all such liabilities, any assets remaining shall revert to the Employer.
|
11.9
|
Disallowance of Deduction
. All contributions made to the Retiree Health Plan Account shall be conditioned upon their deductibility under the Code. The disallowance of the deduction by the Internal Revenue Service shall be cause for reversion of the contribution to the Employer.
|
12.1
|
Right to Amend
. The Company (for itself and other Employers), shall have the right at any time to amend the Plan by written instrument approved by the Administrative Committee, except that no such amendment shall have the effect of reducing any benefits accrued to a Participant, Joint Annuitant or Beneficiary prior thereto, or cause any part of the assets of the Trust Fund to be diverted to any purpose other than for the exclusive benefit of Participants, Joint Annuitants, or Beneficiaries; provided, however, that an amendment that is expected to have a significant cost impact (including, without limitation, an amendment to merge or terminate the Plan) as determined by the Committee whose determination will be final and binding, must be approved by the Board of the Company; and provided further that the Senior Vice President Human Resources may approve any amendment necessary to comply with the Code, ERISA or other applicable laws and regulations.
|
12.2
|
Right to Suspend
. The Plan is adopted in the expectation that it will be continued indefinitely, but the continuance of the Plan and the payment of any contribution hereunder is not assumed as a contractual obligation. Each Employer reserves the right to discontinue its contributions under the Plan and any Employer may discontinue further contributions under the Plan without discontinuing the Plan with respect to any other Employer. The Company (for itself and the other Employers), as authorized by the Board, reserves the right to discontinue the Plan at any time. The suspension of contributions shall not itself constitute a discontinuance of the Plan as long as the minimum funding requirements of Section 412 of the Code are met.
|
12.3
|
Distribution of Funds upon Termination
. The Plan may be terminated by the Board as to all or any particular group or groups of Participants and such other persons, if any, who have or may become entitled to benefits under the Plan on account of such Participant’s participation subject to the conditions that, at any time prior to the satisfaction of all liabilities with respect to Participants, Beneficiaries, Joint Annuitants and Eligible
|
12.4
|
Termination Events
. The Plan will terminate with respect to any Employer upon the happening of any of the following events:
|
(a)
|
Delivery to the Trustee of a notice of termination by the Employer specifying the date as of which the Plan shall terminate for such Employer.
|
(b)
|
Adjudication of an Employer as a bankrupt or a general assignment by the Employer to or for the benefit of creditors or a dissolution of any Employer.
|
12.5
|
Merger or Consolidation
. In the event of any merger or consolidation of the Plan with (or transfer in whole or in part of the assets and liabilities of a trust not another Trust) any other plan of deferred compensation maintained or to be established for the benefit of all or some of the Participants of the Plan, the assets of a trust applicable to such Participants shall be transferred to another trust fund only if:
|
(a)
|
Each Participant would (if either the Plan or the other plan then terminated) receive a benefit immediately after the merger, consolidation or transfer which is equal to or greater than the benefit he would have been entitled to receive immediately before this merger, consolidation or transfer (if the Plan then terminated);
|
(b)
|
Such other plan and trust are qualified under Sections 401(a) and 501(a) of the Code.
|
13.1
|
Plan Voluntary
. The adoption and maintenance of the Plan shall not be deemed to be a contract between the Employer and any Employee. Nothing herein contained shall be deemed to give to any Employee the right to be retained in the employ of an Employer or to interfere with the right of the Employer to discharge any Employee at any time, nor shall it be deemed to give the Employer the right to require any Employee to remain in its employ, nor shall it interfere with the Employee’s right to terminate his Employment at any time.
|
13.2
|
Benefits Payable from Trust
. All benefits payable under the Plan shall be paid or provided for solely from the Trust Fund and Employers assume no liability or responsibility therefor.
|
13.3
|
Non-alienation of Benefits
. Except in the case of a Qualified Domestic Relations Order, the interest hereunder of any Participant, Joint Annuitant, or Beneficiary shall not be alienable by the Participant, Joint Annuitant, or Beneficiary either by assignment or by any other method and shall not be subject to be taken by his creditors by any process whatever. The Administrative Committee shall establish a written procedure to determine the qualified status of domestic relations orders and to administer distributions under such qualified orders.
|
13.4
|
Rights of Participants
. All rights of every Participant under the Plan with relation to the Trust Fund or which may arise against or affect the Trustee shall be enforced exclusively by the Administrative Committee, which is hereby given the express power and authority to enforce all such rights as the representatives of every Participant under the Plan, and in
|
13.5
|
Enforcement.
The Plan and any subsequent amendments thereto, shall be construed and enforced under the Code, ERISA, and the laws of the Commonwealth of Massachusetts.
|
13.6
|
Payment of Plan Expenses
. Investment brokerage fees, transfer taxes, cost of necessary actuarial studies, and similar cost arising as a direct result of the making of investments, actuarial studies, sales of assets or realization of investment yield shall be paid from the Trust Fund.
|
13.7
|
Restriction on Benefits
. In the event of Plan termination, the benefit of any highly compensated active or form Employee is limited to a benefit that is nondiscriminatory under Section 401(a)(4) of the Code.
|
13.8
|
Illegal Provisions
. If any provisions of the Plan shall be held illegal or invalid for any reason, said illegality or invalidity shall not affect the remaining provisions of the Plan, but shall be fully severable, and the Plan shall be construed and enforced as if said illegal or invalid provisions had never been inserted herein.
|
13.9
|
Forfeitures.
Forfeitures arising from termination of Employment, death, or for any other reason must not be applied to increase the benefits any Employee would otherwise receive under the Plan at any time prior to the termination of the Plan or the complete discontinuance of Employer’s contribution thereunder; the amount forfeited must be used as soon as possible to reduce the Employer’s contributions.
|
13.10
|
Lump Sum Payments
. Notwithstanding any provision in the Plan to the contrary, including the requirement to obtain spousal consent to a distribution, if the Actuarial Equivalent present value of the benefit from the Trust Fund payable to any person shall not exceed $1,000 and the benefit has not yet commenced, a lump sum payment of such Actuarial Equivalent present value shall automatically be made to the appropriate recipient as soon as practicable following the date the Actuarial Equivalent present value was determined in lieu of all other benefits under the Plan. Such determination shall be made on or after the date the Participant terminates Employment or dies, as applicable. Such determination shall also be made as of the first day of each Plan Year (provided no benefit has yet commenced) based on the Actuarial Equivalent assumptions then in effect.
|
13.11
|
Repayment of Lump Sums
. In the event that an individual’s Accrued Benefit has been distributed in the form of a lump sum in accordance with Section 13.10, and that individual later returns to Employment with an Employer, the following rules shall apply in determining the individual’s Years of Service under Articles V and VII of the Plan:
|
(a)
|
If the individual returns to Employment and repays within five (5) years of the date of reemployment the amount he received from the Trust plus interest compounded annually at the Actuarial Equivalent interest rate in effect on the January 1st of the Year of reemployment, his prior Years of Service will be reinstated under both Articles V and VII of the Plan.
|
(b)
|
If the individual returns to Employment and does not repay the amount received from the Trust, his prior Years of Service will be reinstated under Article V of the Plan.
|
13.12
|
Headings
. The headings of articles and sections hereof are included solely for convenience and for reference, and if there be any conflict between such headings and the text of the Plan, the text shall control.
|
13.13
|
Action by Employer
. Any action by the Employer under the Plan may be by resolution of its Board, or by an person or persons duly authorized by resolution of said Board to take such action.
|
13.14
|
Gender and Number
. The masculine gender words include both sexes, the single includes the plural, and the plural includes the single, unless the context clearly otherwise requires.
|
13.15
|
Qualified Military Service
. Notwithstanding any provisions of the Plan to the contrary, contributions, benefits and service credit with respect to qualified military service will be provided in accordance with Section 414(u) of the Code. In addition, in accordance with
|
14.1
|
Definitions.
For purposes of this Article XIV, the following definitions shall apply:
|
(a)
|
Key Employee – means any Employee or former Employee (including any deceased Employee) who at any time during the Plan Year that includes the Determination Date was an officer of the Employer having annual compensation greater than $130,000 (as adjusted under Section 416(i)(1) of the Code for Plan Years beginning after December 31, 2002 ($165,000 for 2012), a 5 percent (5%) owner of the Employer, or a 1-percent (1%) owner of the Employer having annual compensation of more than $150,000. For this purpose, annual compensation means compensation within the meaning of Section 415(c)(3) of the Code. The determination of who is a Key Employee will be made in accordance with Section 416(i)(1) of the Code and applicable regulations and other guidance of general applicability issued thereunder.
|
(b)
|
Non-Key Employee – any Employee who is not a Key Employee.
|
(c)
|
Determination Date – the last day of the preceding Plan Year, or of the current Plan Year, if the Plan was not in existence during the preceding year.
|
(d)
|
Valuation Date – the annual date on which the Plan’s assets and liabilities are valued. This is the same valuation date used for computing Plan costs for minimum funding.
|
(e)
|
Annual Compensation – an Employee’s Compensation (as defined in Section 6.2(b)) received from the Employer during the Plan Year.
|
14.2
|
Top-Heavy Plan
. The Plan is a Top-Heavy Plan with respect to any Plan Year if, as of the most recent Valuation Date occurring within a twelve (12) month period ending on
|
14.3
|
Restrictions
. The following restrictions shall apply if the Plan becomes a Top-Heavy Plan.
|
(a)
|
Vesting. A Participant of a Top-Heavy Plan shall have a nonforfeitable interest in his Accrued Benefit derived from Employer contributions as provided under the following schedule:
|
YEARS OF SERVICE
|
VESTED PERCENTAGE OF ACCRUED BENEFIT
|
Less than 2
|
0%
|
2
|
20%
|
3
|
40%
|
4
|
60%
|
5 or more
|
100%
|
(b)
|
Minimum Benefits. During any Plan Year in which the Plan is a Top-Heavy Plan, the Accrued Benefit, derived from Employer’s contributions and expressed as a life annuity commencing at Normal Retirement Date, of a Non-Key Employee, shall be the greater of the benefit accrued for that year under Section 2.2 of the Plan or (1) times (2) where:
|
(i)
|
is the Employee’s Average Compensation; and
|
(ii)
|
is two percent (2%) per Year of Service, not to exceed twenty percent (20%).
|
(i)
|
Years of Service shall be the Participant’s Years of Service except any service with the Employer shall be disregarded to the extent that such service occurs during a Plan Year when the Plan benefits (within the meaning of Section 410(b) of the Code) no Key Employee or former Key Employee any year which includes the last day of a Plan Year which the Plan was not a Top-Heavy Plan.
|
(ii)
|
Average Compensation shall be the Participant’s average Compensation from the Employer during that period of five (5) consecutive years (or actual years, if less than five) which produce the highest average.
|
14.4
|
Plan Aggregations
. For purposes of determining top-heaviness, the aggregation group shall include:
|
(a)
|
each plan of the Employer in which a Key Employee is a participant; and
|
(b)
|
each other plan of the Employer that allows a covering a Key Employee to meet qualification requirements under the coverage and anti-discrimination rules of Sections 401(a)(4) and 410 of the Code; and
|
(c)
|
each terminated plan described in subsection (a) or (b) above maintained by the Employer during the Plan Year containing the Determination Date or any of the four preceding Plan Years (regardless of whether the plan has terminated); and
|
(d)
|
at the option of the Employer, any other plan maintained by the Employer as long as the expanded aggregation group including such plan or plans continues to
|
“4.2
|
“Normal Retirement Income.” A Participant retiring on his Normal Retirement Date shall be entitled to receive a monthly income for life, payable from his Normal Retirement Date, which shall be equal to one-twelfth (1/12) of the sum of (a) and (b) and (c) below:
|
(a)
|
the sum of (i) and (ii) below:
|
(i)
|
For a Participant who was a Participant in the Astrophysics Plan on November 30, 1989, the annual accrued benefit under the Astrophysics Plan as of November 30, 1989, as set forth on the attached schedule.
|
(ii)
|
For each Year of Credited Service (with appropriate adjustment for completed months) after November 30, 1989, eighty-five one hundredths percent (.85%) of his Average Earnings, plus
|
(b)
|
For every Participant, for each Year of Service (with appropriate adjustment for completed months) before or after December 1, 1989, eighty-five one hundredths percent (.85%) of his Average Earnings, plus
|
(c)
|
For an Employee who was a Participant as of December 31, 1988, the monthly retirement income accrued as of December 31, 1988, as determined under the provisions of Appendix I of the Plan in effect on that date.”
|
EMPLOYEE
BENEFIT |
PERCENT
VESTED |
ANNUAL
BENEFIT |
|
MONTHLY
|
|
||
Aiman, Kenneth M.
|
100
|
$
|
5,242.92
|
|
$
|
436.91
|
|
Bailey, Frederick A.
|
100
|
31,216.80
|
|
2,601.40
|
|
||
Bamett, Todd
|
40
|
1,146.24
|
|
95.52
|
|
||
Brannon, Sharon R.
|
100
|
1,213.20
|
|
101.10
|
|
||
Briones, Jose Daniel
|
100
|
1,755.12
|
|
146.26
|
|
||
Bryce, James W.
|
60
|
1,198.08
|
|
99.84
|
|
||
Castro, Abel R.
|
60
|
658.32
|
|
54.86
|
|
||
Castro, Florentino
|
100
|
1,858.20
|
|
154.85
|
|
||
Castro, Miguel
|
100
|
1,139.52
|
|
94.96
|
|
||
Chatman, Donald L.
|
100
|
5,113.68
|
|
426.14
|
|
||
Cooley, Janet
|
60
|
1,157.76
|
|
96.48
|
|
||
Delsignore, Patsy F.
|
80
|
2,002.44
|
|
166.87
|
|
||
Dermott, Brian P.
|
100
|
7,294.80
|
|
607.90
|
|
||
Dodson, Roy
|
20
|
359.28
|
|
29.94
|
|
||
Ericksen, Richard A.
|
40
|
876.96
|
|
73.08
|
|
||
Espinoza, Arturo
|
20
|
310.80
|
|
25.90
|
|
||
Espiritu, Vicky E.
|
60
|
1,021.20
|
|
85.10
|
|
||
Esquivel, Alicia O.
|
100
|
1,962.72
|
|
163.56
|
|
||
Fleming, James P.
|
40
|
1,864.80
|
|
155.40
|
|
||
Garcia, Galileo
|
40
|
1,020.48
|
|
85.04
|
|
||
German, Meroe P.
|
60
|
1,374.48
|
|
114.54
|
|
||
Giesseman, Helen M.
|
100
|
4,012.20
|
|
334.35
|
|
||
Harma, Delia M.
|
100
|
1,493.28
|
|
124.44
|
|
||
Hua, Huy
|
100
|
3,341.76
|
|
278.48
|
|
||
Huey, John
|
40
|
1,533.60
|
|
127.80
|
|
||
Huggins, William D.
|
60
|
5,783.04
|
|
481.92
|
|
||
Ignacio, Antonio A.
|
100
|
1,219.92
|
|
101.66
|
|
||
Jacquez, Benjamin
|
60
|
1,287.36
|
|
107.28
|
|
||
Jaime, Maria
|
100
|
1,223.28
|
|
101.94
|
|
||
Konreddy, Naveen
|
60
|
2,109.60
|
|
175.80
|
|
||
Lloyd, Donald
|
40
|
1,299.84
|
|
108.32
|
|
||
Lovisa, Roland
|
100
|
7,266.72
|
|
605.56
|
|
EMPLOYEE
BENEFIT |
PERCENT
VESTED |
ANNUAL
BENEFIT |
|
MONTHLY
|
|
||
Marshall, Patricia A.
|
80
|
882.72
|
|
73.56
|
|
||
Miranda Jr., Bemardo B.
|
100
|
1,645.92
|
|
137.16
|
|
||
Mueller, Leopoldine A.
|
100
|
1,578.72
|
|
131.56
|
|
||
Mutter, Louis
|
60
|
1,021.68
|
|
85.14
|
|
||
Naval, Jr., Anselmo P.
|
100
|
7,982.28
|
|
665.19
|
|
||
O’Brien, Gregory G.
|
100
|
1,532.16
|
|
127.68
|
|
||
Oca, Feliza
|
100
|
2,034.72
|
|
169.56
|
|
||
Ochoa, Delfino
|
100
|
1,731.84
|
|
144.32
|
|
||
Ochoa, Ezequiel
|
100
|
1,360.08
|
|
113.34
|
|
||
Olsen, Kenneth R.
|
80
|
2,073.60
|
|
172.80
|
|
||
Orlando, Carlo L.
|
80
|
1,323.36
|
|
110.28
|
|
||
Orozco, Armando
|
100
|
1,399.68
|
|
116.64
|
|
||
Ortega Jr., Rudy V.
|
100
|
2,784.24
|
|
232.02
|
|
||
Paine, Diane J.
|
80
|
1,391.76
|
|
115.98
|
|
||
Parmer, George A.
|
80
|
1,539.36
|
|
128.28
|
|
||
Patel, Mehendra H.
|
80
|
2,193.12
|
|
182.76
|
|
||
Phan, Xuyen D.
|
100
|
1,979.28
|
|
164.94
|
|
||
Raines, Jerry C.
|
40
|
969.60
|
|
80.80
|
|
||
Randall, Annette
|
60
|
937.44
|
|
78.12
|
|
||
Reed, Stephen
|
60
|
1,404.00
|
|
117.00
|
|
||
Reyes, Celso L.
|
60
|
982.44
|
|
81.87
|
|
||
Riedel, Sharon
|
40
|
746.40
|
|
62.20
|
|
||
Rivello, Paul J.
|
60
|
1,119.60
|
|
93.30
|
|
||
Roldan Jr., Natalio
|
100
|
1,692.72
|
|
141.06
|
|
||
Rothrock, Robert D.
|
100
|
1,747.32
|
|
145.61
|
|
||
Sanchez, Angel
|
100
|
1,058.64
|
|
88.22
|
|
||
Sanchez, Jose
|
100
|
1,581.84
|
|
131.82
|
|
||
Sary, Pharath
|
40
|
632.16
|
|
52.68
|
|
||
Sary, Pharith
|
60
|
1,354.32
|
|
112.86
|
|
||
Shirley, John B.
|
100
|
1,853.28
|
|
154.44
|
|
||
Sturgeon, Copper M.
|
80
|
1,350.00
|
|
112.50
|
|
||
Trapani, Linda A.
|
100
|
2,244.60
|
|
187.05
|
|
||
Turcios, Guillermo S.
|
100
|
1,940.04
|
|
161.67
|
|
||
Ulanday, Absalon D.
|
100
|
1,359.00
|
|
113.25
|
|
||
Vaysburd, Eduard
|
60
|
1,628.64
|
|
135.72
|
|
||
Vo, Julie J.
|
20
|
265.44
|
|
22.12
|
|
||
Wascher, Philllip M.
|
60
|
3,754.08
|
|
312.84
|
|
||
Welch, Wayne L.
|
100
|
5,012.28
|
|
417.69
|
|
||
Wiersma, Lars S.
|
100
|
7,621.08
|
|
635.09
|
|
||
Yates, Raymond G.
|
100
|
37,840.44
|
|
3,153.37
|
|
Social Security Number
|
Name
|
Service Credit
|
174-48-0328
|
Alexander, John
|
12
|
447-54-0957
|
Arnold, Steven
|
6
|
015-34-5337
|
Ayers, Phillip
|
6
|
219-40-3401
|
Barrett, Robert
|
4
|
024-66-4354
|
Beech, Paul
|
5
|
266-96-9604
|
Buser, Andres
|
1
|
023-32-9254
|
Castellana, Angelo
|
11
|
497-44-8105
|
Fleming, Donald
|
5
|
530-18-0816
|
Fraser, Dale
|
8
|
031-34-0349
|
Galluccio, Michael
|
7
|
109-24-7323
|
Gross, Murray
|
16
|
011-40-7484
|
King, Ronald
|
5
|
076-48-6364
|
Klemmer, Anthony
|
13
|
463-76-8617
|
Kott, L. Kevin
|
9
|
388-32-8927
|
Kucharski, John
|
17
|
100-28-1377
|
Lewis, Elsie L.
|
3
|
065-38-5029
|
Lorenz, Deborah
|
11
|
005-32-5412
|
Parker, William
|
4
|
489-48-6521
|
Parks, Fred
|
16
|
093-32-9132
|
Peters, Donald
|
12
|
014-52-4751
|
Ribaudo, William
|
9
|
038-54-1093
|
Rossi, Luciano
|
17
|
517-76-8123
|
Schorling, Thomas
|
10
|
390-36-8544
|
Shaver, Paul
|
1
|
564-62-3475
|
Shetterly, John
|
3
|
176-26-8375
|
Slawek, Joseph
|
3
|
027-32-8644
|
Sullivan, William
|
5
|
005-32-5054
|
Theodores, Theodore
|
6
|
144-28-3156
|
Touhill, C. Joseph
|
3
|
577-44-1358
|
Williams, Charles
|
16
|
LOCATION
NAME |
LOCATION
NUMBER |
EARLIEST DATE
CREDITED SERVICE BEGINS |
Wright Components
|
25
|
01/01/1988
|
Opto Electronics Components - St. Louis
|
30
|
01/01/1977
|
Opto Electronics Components – St. Louis (Union)
|
030U
|
01/01/1978
|
Pressure Science
|
75
|
10/01/1986
|
Reticon
|
80
|
06/01/1988
|
Power Systems
|
93
|
04/01/1984
|
Life Sciences – Wallac (Gaithersburg)
|
154
|
06/14/1993
|
Life Sciences – Wallac (Akron)
|
179
|
03/01/1998
|
Belfab
|
181
|
04/01/1998
|
Belfab (Union)
|
182
|
04/01/1998
|
Analytical Instruments
|
193
|
05/29/1999
|
Years of Service
|
Vested Percentage
|
Less than 5
|
0
|
5 or more
|
100
|
1.1
|
“Accrued Benefit” means the amount of retirement income as of the calculation date determined in accordance with Section 3 of this Appendix H.
|
1.2
|
“Active Service” means actual performance of duties as a Shop Union Employee.
|
1.3
|
“Actuarial Equivalence” means a benefit of equivalent value to the benefit which otherwise would have been provided determined on the basis of the following actuarial assumptions:
|
Mortality
|
The 1971 Group Annuity Mortality Table with no loading, and projected by Scale E, with a one-year age setback for the Shop Union Participant and a five-year setback for any Beneficiary.
|
Interest
|
The annual interest rate on 30-year Treasury securities as specified by the Commissioner of Internal Revenue for the month preceding the month as of which Actuarial Equivalence is being determined.
|
Mortality
|
The mortality table prescribed by the Secretary of the Treasury under Section 417(e)(3)(A)(ii)(I) of the Code as in effect on the date as of which Actuarial Equivalence is being determined.
|
1.4
|
“Beneficiary” means a person(s), trust, or other entity designated by the Shop Union Participant, on a form and in a manner prescribed by the Administrative Committee to receive any benefits which shall be payable under this Plan upon the death of a Shop Union Participant, or in the absence of such designation, the Shop Union Participant’s spouse, if living, or if deceased, the Shop Union Participant’s issue then living, per stirpes, or if none, the Shop Union Participant’s estate.
|
1.5
|
“Collective Bargaining Agreement” shall mean the then current collective bargaining agreement between the Company and the Union.
|
1.6
|
“Credited Service” means that portion of a Shop Union Participant’s Employment, as determined in accordance with Section 6 of this Appendix H, which will be used in determining the amount of a Shop Union Participant’s retirement benefit under this Plan.
|
1.7
|
“Disabled Shop Union Participant” means a Shop Union Participant who incurs a physical or mental condition which, as determined by the Federal Social Security Administration, renders the Shop Union Participant eligible to receive disability benefits under Title II of the Federal Social Security Act, as amended from time to time. If the Shop Union Participant is denied Social Security disability benefits for any reason other than the fact that he is not permanently and totally disabled, then a determination of disability shall be made by a medical doctor selected by the Administrative Committee.
|
1.8
|
“Normal Retirement Date” shall mean the first day of the month coinciding with or next succeeding the later of a) the date the Shop Union Participant shall have attained age 65; or b) the 5th anniversary of the date the Shop Union Participant commenced participation in the plan. The Normal Retirement Benefit is nonforfeitable upon attaining the Normal Retirement Date.
|
1.9
|
“Period of Service,” measured in calendar months, means the period commencing in the calendar month during which a Shop Union Employee first performs an hour of service, within the meaning of Section 2530.200b-2(a)(1) of the Department of Labor Regulations, for the Employer and terminating in the calendar month in which the earlier of the following takes place: (i) a Shop Union Employee quits, retires, is discharged or dies, or (ii) the occurrence of the first anniversary of the date on which a Shop Union Employee has been absent from service with the Company for reasons other than those listed in (i) above, provided that if a Shop Union Participant is absent on an approved leave of absence that extends beyond such one-year period, such period of absence shall be included in his Period of Service to the same extent that he would accrue seniority as provided for in the Collective Bargaining Agreement; and provided further that any period during which a Shop Union Employee retains seniority rights under the Collective Bargaining Agreement for recall purposes shall be included in his Period of Service if such Shop Union Employee returns to Active Service within such period. If the Shop Union Employee does not return to Active Service within such period, whether by reason of not being recalled or by reason of being recalled but not returning to Active Service, his Period of Service shall terminate on the earlier of (i) or (ii) above.
|
1.10
|
“Pre-Retirement Surviving Spouse Option” means the pre-retirement surviving spouse benefit described in Section 7.4 of this Appendix H.
|
1.11
|
“Separation from Service Date” means the date on which a Shop Union Participant’s Period of Service ends.
|
1.12
|
“Shop Union Employee” shall mean any hourly employee employed by the Company and who is represented by the Union under the terms and provisions of the Collective Bargaining Agreement, or who pays dues to the Union.
|
1.13
|
“Shop Union Participant” shall mean a Shop Union Employee who is participating in the Plan under the provisions of Section 2 of this Appendix H, or a former employee who is receiving benefits under the plan or who has vested rights under the Plan.
|
1.14
|
“Surviving Spouse Option” shall mean the normal form of retirement benefit payable to a married Shop Union Participant under the provisions of Section 7.1(b) of this Appendix H.
|
1.15
|
“Union” shall mean the PerkinElmer/John Crane/EKK Eagle Shop Union.
|
1.16
|
“Years of Service” shall mean that portion of a Shop Union Employee’s Employment, as determined in accordance with Section 4 of this Appendix H, which will be used in determining a Shop Union Participant’s eligibility for a retirement benefit under the Plan.
|
(a)
|
The Shop Union Participant may elect to defer commencement of his retirement income until his Normal Retirement Date. The amount of his retirement income will be determined in accordance with Section 3.2 of this Appendix H based on his Credited Service as of his Early Retirement Date.
|
(b)
|
The Shop Union Participant may elect at his Early Retirement Date or at any time prior to his Normal Retirement Date to have his retirement income commence on the first day of any month after the date of his retirement but no later than his Normal Retirement Date. The amount of his retirement income shall be equal to the amount calculated in accordance with Section 3.2 of this Appendix H reduced by one-half percent for each month by which the date that retirement payments are to commence precedes his Normal Retirement Date.
|
(a)
|
A Shop Union Participant whose Employment terminates prior to retirement but after the completion of at least 5 Years of Service, by reason of quit, discharge, death, or having become a Disabled Shop Union Participant as defined in Section 1.7 of this Appendix H, shall be 100% vested in his or her accrued benefit, and except as provided in subparagraphs (b) through (d) below, such Shop Union Participant shall be entitled to receive a monthly retirement income for life, with payments guaranteed for sixty (60) months, payable from such Shop Union Participant’s Normal Retirement Date, which monthly retirement income shall be determined in accordance with Section 3.2 of this Appendix H, based upon the benefit schedule in effect on the date of his termination. Such a Shop Union Participant shall also be eligible to elect an Early Retirement Date, in which case the amount of his retirement income shall be determined in accordance with
|
(b)
|
Provided, however, that if the Shop Union Participant’s Employment shall have terminated on account of such Shop Union Participant having become a Disabled Shop Union Participant as defined in Section 1.7, and such Shop Union Participant as of his or her death had attained age 45 and completed at least 15 Years of Service, such Shop Union Participant’s entitlements to benefits shall be determined under Section 5 of this Appendix H rather than under this Section 3.4 of this Appendix H.
|
(c)
|
Provided further that if the Shop Union Participant’s Employment terminates by reason of death and such Shop Union Participant has an Eligible Spouse, such Eligible Spouse shall receive a benefit as described in Article VIII of this Plan and no benefit shall be payable under this Section 3.4 of this Appendix H.
|
(d)
|
Provided further that if the Shop Union Participant’s Employment terminates by reason of death and such Shop Union Participant is unmarried, the Shop Union Participant’s Beneficiary shall be entitled to the same 60 months certain benefit that would have been payable to the Shop Union Participant and such Beneficiary had the deceased Shop Union Participant elected an Early Retirement Benefit under Section 3.3(b) of this Appendix H which commenced on the first day of the month of his death.
|
(a)
|
For a Shop Union Participant who as of the Effective Date had been covered under the prior provisions of the Plan, the Shop Union Participant’s continuous service with the Company prior to the Effective Date, determined in accordance with the provisions of the Plan in effect prior to the Effective Date, shall be counted as Years of Service.
|
(b)
|
Subject to Section 4.2(a) of this Appendix H, a Shop Union Participant who has attained age 18 shall accrue 1/12th of a Year of Service for each calendar month after the Effective Date within the Shop Union Participant’s Period of Service. If a Shop Union Participants Employment is terminated (either voluntarily or involuntarily) and he is later reemployed into Active Service within 12 months, the period between his Separation from Service Date and the date of reemployment shall be included in his Years of Service. However, if his Employment is terminated while absent from Active Service for reasons other than a quit, discharge, or retirement (e.g., leave of absence), Years of Service shall be counted for the period from his Separation from Service Date to the date of reemployment only if he is reemployed within 12 months of the first day of that absence.
|
(c)
|
Upon the re-employment of a Shop Union Participant who had previously been a Shop Union Participant on or after the Effective Date, his Years of Service shall be reinstated as of the date of his re-employment.
|
(d)
|
In no event shall a Shop Union Participant be deemed to receive credit for more than one Year of Service with respect to any Year.
|
4.3
|
For purposes of Section 4.2(b) of this Appendix H, a Shop Union Participant shall be considered as accruing Years of Service in accordance with his normal workweek for each month.
|
(a)
|
Where specifically required by ERISA all or part of the Shop Union Participant’s service with a member of the same controlled group (as such term is defined in
|
(i)
|
The Administrative Committee shall not give credit for service with a controlled group member immediately preceding or following Employment with the Company under any of the following conditions:
|
1)
|
The controlled group member was not a part of the same controlled group at the time the service was rendered, or
|
2)
|
The controlled group member at the time the service was rendered maintained a qualified plan which required voluntary contributions from the Shop Union Employee as a prerequisite for participation and the Shop Union Employee elected not to participate, or
|
3)
|
The controlled group member at the time the service was rendered maintained a qualified plan which provided in the terms of such plan that certain service was not to be counted in determining Years of Service.
|
5.1
|
A Shop Union Participant who has attained age 45 and completed at least 15 Years of Service, and who becomes a Disabled Shop Union Participant while a Shop Union Employee, will be eligible to receive a disability pension benefit upon proper application to the Plan.
|
5.2
|
The amount of a disability pension benefit shall be calculated as if such Disabled Shop Union Participant had attained age 65 prior to such disability, based on the Years of Service that have been credited to such Disabled Shop Union Participant upon application for the disability pension benefit. The amount of a disability pension benefit shall not be actuarially reduced based on the Disabled Shop Union Participant’s failure to attain age 65.
|
5.3
|
A Disabled Shop Union Participant may elect to receive a disability pension benefit in any form of distribution otherwise available under Section 7 of this Appendix H to a Shop Union Participant who has attained his Normal Retirement Date. Specifically, a Disabled Shop Union Participant may elect to receive his disability pension benefit in the form of one of the following: (1) a lifetime income, with payments guaranteed for 60 months; (2) a Surviving Spouse Option (with payments calculated by also increasing the age of the Shop Union Participant’s Eligible Spouse by the number of days between the Shop Union Participant’s actual age and age 65, and with lifetime payments to the surviving Eligible Spouse equal to 50%, 66-2/3%, or 100% of the Shop Union Participant’s monthly pension); or (3) a lifetime income option.
|
5.4
|
Disability pension benefit payments shall be suspended in the event that a Shop Union Participant receiving a disability pension benefit is no longer determined to be a Disabled Shop Union Participant, as defined in Section 1.7 of this Appendix H. In the event that a disability pension benefit is suspended, payments may resume as early or normal retirement benefits, with any early retirement benefit reduced in accordance with Section 3.3(b) of this Appendix H if not deferred to the Shop Union Participant’s Normal Retirement Date, once the Shop Union Participant otherwise qualifies for a Normal Retirement Income or an Early Retirement Income.
|
5.5
|
Upon the attainment of his Normal Retirement Date, a Disability Shop Union Participant’s disability pension benefit shall be converted to a Normal Retirement Income (subject to the waiver and spousal consent requirements of Article VIII if the Disabled Shop Union Participant is married), with the Shop Union Participant having the right to elect any form of distribution otherwise available to a Shop Union Participant who has attained his Normal Retirement Date.
|
5.6
|
Notwithstanding anything to the contrary, a Shop Union Participant shall not accrue any further Years of Service or Credited Service for any period with respect to, or during, which he is receiving a disability pension benefit pursuant to this Section 5 of this Appendix H.
|
6.1
|
A Shop Union Participant’s years of Credited Service shall be determined in accordance with the following:
|
(a)
|
For a Shop Union Participant as of the Effective Date, who has been covered under the prior provisions of the Plan, the Shop Union Participant’s period of continuous employment with the Company prior to the Effective Date, determined in accordance with the provisions of the Plan in effect prior to the Effective Date, shall be counted as years of Credited Service.
|
(b)
|
A Shop Union Participant shall accrue 1/12th of a year of Credited Service for each calendar month within the Period of Service.
|
(c)
|
A Shop Union Participant shall in no event be deemed to accrue more than one full year of Credited Service with respect to any Plan Year.
|
(d)
|
Upon the re-employment of a Shop Union Participant who had previously been a Shop Union Participant on or after the Effective Date, his years of Credited
|
(a)
|
The retirement income payable to a Shop Union Participant at his Normal Retirement Date who does not have an Eligible Spouse on the date payments commence shall be in the form of a lifetime income, with payments guaranteed for sixty (60) months, in an amount calculated in accordance with Section 3.2 of this Appendix H.
|
(b)
|
The retirement income payable to a Shop Union Participant who has an Eligible use on the date payments commence shall be in the form of a Surviving Spouse Option with his Eligible Spouse as the survivor, subject to the following:
|
(i)
|
Under a Surviving Spouse Option, a reduced amount shall be paid to the Shop Union Participant for his lifetime, and his Eligible Spouse, if surviving at the Participant’s death, shall be entitled to receive thereafter a lifetime benefit equal to 50 percent, 66-2/3 percent or 100 percent (depending on the election made) of the reduced benefit which had been payable to the Participant. The amount of the reduced benefit payable to the Participant and survivor shall be the Actuarial Equivalence of the lifetime benefit as determined in Section 3.2 of this Appendix H.
|
(ii)
|
The Surviving Spouse Option may be waived pursuant to Article VIII.
|
(a)
|
Lifetime Income Option
. Under this option, retirement income will cease at the death of the Shop Union Participant.
|
(b)
|
Joint and Survivor Option
. Under this option, a married Shop Union Participant can elect to receive a reduced income, but after the Shop Union Participant’s death 50%, 66 2/3% or 100% (depending on the election made) of such reduced income shall be paid for life to his designated joint annuitant.
|
(c)
|
Five (5) Year Certain Option
. Under this option, retirement income shall be in the form of a lifetime income with payments guaranteed for 60 months.
|
|
Name of Company
|
|
State or Country
of Incorporation
or Organization
|
|
Name of Parent
|
1.
|
PerkinElmer, Inc.
|
|
Massachusetts
|
|
N/A
|
2.
|
Caliper Life Sciences, Inc.
|
|
Delaware
|
|
PerkinElmer Holdings, Inc.
|
3.
|
Cambridge Research & Instrumentation, Inc.
|
|
Delaware
|
|
Caliper Life Sciences, Inc.
|
4.
|
PerkinElmer CV Holdings, LLC
|
|
Delaware
|
|
PerkinElmer Global Holdings S.à r.l.
|
5.
|
PerkinElmer Diagnostics Holdings, Inc.
|
|
Delaware
|
|
PerkinElmer Holdings, Inc.
|
6.
|
PerkinElmer Health Sciences, Inc.
|
|
Delaware
|
|
PerkinElmer Holdings, Inc.
|
7.
|
PerkinElmer Informatics, Inc.
|
|
Delaware
|
|
PerkinElmer Holdings, Inc.
|
8
|
ViaCord, LLC
|
|
Delaware
|
|
PerkinElmer Diagnostics Holdings, Inc.
|
9.
|
VisEn Medical Inc.
|
|
Delaware
|
|
PerkinElmer Health Sciences, Inc.
|
10.
|
Xenogen Corporation
|
|
Delaware
|
|
Caliper Life Sciences, Inc.
|
11.
|
NovaScreen Biosciences Corporation
|
|
Maryland
|
|
Caliper Life Sciences, Inc.
|
12.
|
PerkinElmer Holdings, Inc.
|
|
Massachusetts
|
|
PerkinElmer, Inc.
|
13.
|
EUROIMMUN US Inc.
|
|
New Jersey
|
|
PerkinElmer Diagnostics Holdings, Inc.
|
14.
|
EUROIMMUN US Real Estate LLC
|
|
New Jersey
|
|
EUROIMMUN US Inc.
|
15.
|
Perten Instruments, Inc.
|
|
Nevada
|
|
PerkinElmer Health Sciences, Inc.
|
16.
|
PerkinElmer Genetics, Inc.
|
|
Pennsylvania
|
|
PerkinElmer Diagnostics Holdings, Inc.
|
17.
|
Bioo Scientific Corporation
|
|
Texas
|
|
PerkinElmer Holdings, Inc.
|
18.
|
PerkinElmer Automotive Research, Inc.
|
|
Texas
|
|
PerkinElmer Holdings, Inc.
|
19.
|
Perkin-Elmer Argentina S.R.L.
|
|
Argentina
|
|
PerkinElmer Holdings, Inc. (98%)
1
|
20.
|
PerkinElmer Health Sciences (Australia) Pty. Ltd.
|
|
Australia
|
|
PerkinElmer Holdings Pty. Ltd.
|
21.
|
PerkinElmer Holdings Pty. Ltd.
|
|
Australia
|
|
PerkinElmer Diagnostics Global Holdings S.à r.l.
|
22.
|
PerkinElmer Pty. Ltd.
|
|
Australia
|
|
PerkinElmer Holdings, Inc.
|
23.
|
Perten Instruments of Australia Pty Ltd.
|
|
Australia
|
|
Perten Instruments AB
|
24.
|
RHS Subsidiary Pty. Ltd.
|
|
Australia
|
|
PerkinElmer Health Sciences (Australia) Pty. Ltd.
|
25.
|
PerkinElmer Vertriebs GmbH
|
|
Austria
|
|
Wellesley B.V.
|
26.
|
PerkinElmer BVBA
|
|
Belgium
|
|
PerkinElmer Life Sciences International Holdings
2
|
27.
|
EUROIMMUN Brasil Importação e Distribuição Ltda.
|
|
Brazil
|
|
EUROIMMUN Medizinische Labordiagnostika AG
3
|
28.
|
PerkinElmer do Brasil Ltda.
|
|
Brazil
|
|
PerkinElmer Diagnostics Global Holdings S.à r.l. (99%)
4
|
29.
|
EUROIMMUN Medical Diagnostics Canada Inc.
|
|
Canada
|
|
EUROIMMUN Medizinische Labordiagnostika AG
|
30.
|
PerkinElmer Health Sciences Canada, Inc.
|
|
Canada
|
|
PerkinElmer Life Sciences International Holdings
|
31.
|
Perten Instruments Inc.
|
|
Canada
|
|
Perten Instruments AB
|
32.
|
Perkin Elmer Chile Ltda.
|
|
Chile
|
|
PerkinElmer Health Sciences, Inc. (68%)
5
|
33.
|
Beijing OUMENG Biotechnology Co. Ltd.
|
|
China
|
|
EUROIMMUN Medizinische Labordiagnostika AG
|
34.
|
Chengdu PerkinElmer Medical Laboratory Co., Ltd.
|
|
China
|
|
Suzhou PerkinElmer Medical Laboratory Co., Ltd.
|
35.
|
EUROIMMUN (Hangzhou) Medical Laboratory Diagnostics Co., Ltd.
|
|
China
|
|
EUROIMMUN Medical Diagnostics (China) Co., Ltd.
|
36.
|
EUROIMMUN Medical Diagnostics (China) Co., Ltd.
|
|
China
|
|
EUROIMMUN Medizinische Labordiagnostika AG
|
37.
|
EUROIMMUN (Tianjin) Medical Diagnostic Technology Co., Ltd.
|
|
China
|
|
EUROIMMUN Medical Diagnostics (China) Co., Ltd.
|
38.
|
Guangzhou EUROIMMUN Medical Diagnostic Products Co., Ltd.
|
|
China
|
|
EUROIMMUN Medical Diagnostics (China) Co., Ltd.
|
39.
|
Hangzhou EUROIMMUN Medical Laboratory Diagnostic Products Co., Ltd.
|
|
China
|
|
EUROIMMUN Medical Diagnostics (China) Co., Ltd.
|
40.
|
PerkinElmer Healthcare Diagnostics (Shanghai) Co., Ltd.
|
|
China
|
|
PerkinElmer IVD Pte Ltd.
|
41.
|
PerkinElmer Instruments (Suzhou) Co., Ltd.
|
|
China
|
|
Wellesley B.V.
|
42.
|
PerkinElmer Management (Shanghai) Co., Ltd.
|
|
China
|
|
PerkinElmer Singapore Pte Ltd.
|
43.
|
PerkinElmer (Shanghai) Equity Investment Fund, L.P.
|
|
China
|
|
PerkinElmer Singapore Pte Ltd. (98%)
6
|
44.
|
PerkinElmer (Shanghai) Equity Investment Fund Management Co., Ltd.
|
|
China
|
|
PerkinElmer Singapore Pte Ltd.
|
|
Name of Company
|
|
State or Country
of Incorporation
or Organization
|
|
Name of Parent
|
45.
|
Perten Instruments (Beijing) Co., Ltd.
|
|
China
|
|
Perten Instruments AB
|
46.
|
Shanghai Haoyuan Biotech Co., Ltd.
|
|
China
|
|
PerkinElmer Holding Luxembourg S.à r.l.
|
47.
|
Shanghai Spectrum Instruments Co., Ltd.
|
|
China
|
|
Wellesley B.V.
|
48.
|
Suzhou PerkinElmer Medical Laboratory Co., Ltd.
|
|
China
|
|
PerkinElmer Healthcare Diagnostics (Shanghai) Co., Ltd. (70%)
7
|
49.
|
Suzhou Sym-Bio Lifescience Co., Ltd.
|
|
China
|
|
PerkinElmer Healthcare Diagnostics (Shanghai) Co., Ltd.
|
50.
|
PerkinElmer Danmark A/S
|
|
Denmark
|
|
Wallac Oy
|
51.
|
PerkinElmer Finland Oy
|
|
Finland
|
|
Wallac Oy
|
52.
|
PerkinElmer Investments Ky
|
|
Finland
|
|
PerkinElmer Finance Luxembourg S.à r.l.
8
|
53.
|
PerkinElmer Oy
|
|
Finland
|
|
Wellesley B.V.
|
54.
|
Wallac Oy
|
|
Finland
|
|
PerkinElmer Oy
|
55.
|
Bio Evolution SAS
|
|
France
|
|
EUROIMMUN France SAS
|
56.
|
EUROIMMUN France SAS
|
|
France
|
|
EUROIMMUN Medizinische Labordiagnostika AG
|
57.
|
PerkinElmer SAS
|
|
France
|
|
PerkinElmer Nederland B.V.
|
58.
|
Perten Instruments France SASU
|
|
France
|
|
Perten Instruments AB
|
59.
|
EUROIMMUN Medizinische Labordiagnostika AG
|
|
Germany
|
|
PerkinElmer Germany Diagnostics GmbH
|
60.
|
PerkinElmer Cellular Technologies Germany GmbH
|
|
Germany
|
|
PerkinElmer LAS (Germany) GmbH
|
61.
|
PerkinElmer chemagen Technologie GmbH
|
|
Germany
|
|
PerkinElmer Cellular Technologies Germany GmbH
|
62.
|
PerkinElmer Germany Diagnostics Financing GmbH
|
|
Germany
|
|
PerkinElmer Diagnostics Global Holdings S.à r.l.
|
63.
|
PerkinElmer Germany Diagnostics GmbH
|
|
Germany
|
|
PerkinElmer Global Diagnostics S.à r.l.
|
64.
|
PerkinElmer LAS (Germany) GmbH
|
|
Germany
|
|
PerkinElmer Germany Diagnostics GmbH
|
65.
|
Perten Instruments GmbH
|
|
Germany
|
|
Perten Instruments AB
|
66.
|
PerkinElmer (Hong Kong) Ltd.
|
|
Hong Kong
|
|
PerkinElmer Holdings, Inc.
|
67.
|
Orchid Biomedical Systems Pvt Ltd.
|
|
India
|
|
Tulip Diagnostics Pvt Ltd.
|
68.
|
PerkinElmer Health Sciences Pvt Ltd.
|
|
India
|
|
PerkinElmer IVD Pte Ltd. (91%)
9
|
69.
|
PerkinElmer (India) Pvt Ltd.
|
|
India
|
|
PerkinElmer Singapore Pte Ltd.
10
|
70.
|
Tulip Diagnostics Pvt Ltd.
|
|
India
|
|
PerkinElmer Holding Luxembourg S.à r.l. (99%)
11
|
71.
|
PerkinElmer (Ireland) Ltd.
|
|
Ireland
|
|
Wellesley B.V.
|
72.
|
PerkinElmer Israel Ltd.
|
|
Israel
|
|
PerkinElmer Holding Luxembourg S.à r.l.
|
73.
|
Dani Analitica S.r.l.
|
|
Italy
|
|
PerkinElmer Diagnostics Global Holdings S.à r.l.
|
74.
|
EUROIMMUN Italia Diagnostica Medica S.r.l.
|
|
Italy
|
|
EUROIMMUN Medizinische Labordiagnostika AG
|
75.
|
Perkin Elmer Italia SpA
|
|
Italy
|
|
Wellesley B.V.
|
76.
|
Perten Instruments Italia S.r.l.
|
|
Italy
|
|
Perten Instruments AB
|
77.
|
PerkinElmer Japan Co. Ltd.
|
|
Japan
|
|
PerkinElmer Life Sciences International Holdings (97%)
12
|
78.
|
Perkin Elmer Yuhan Hoesa
|
|
Korea
|
|
PerkinElmer Diagnostics Global Holdings S.à r.l.
|
79.
|
PerkinElmer Diagnostics Global Holdings S.à r.l.
|
|
Luxembourg
|
|
PerkinElmer Global Holdings S.à r.l.
|
80.
|
PerkinElmer Finance Luxembourg S.à r.l.
|
|
Luxembourg
|
|
PerkinElmer Holding Luxembourg S.à r.l.
|
81.
|
PerkinElmer Global Diagnostics S.à r.l.
|
|
Luxembourg
|
|
PerkinElmer Global Financing S.à r.l.
|
82.
|
PerkinElmer Global Financing S.à r.l.
|
|
Luxembourg
|
|
PerkinElmer Global Holdings S.à r.l.
|
83.
|
PerkinElmer Global Holdings S.à r.l.
|
|
Luxembourg
|
|
PerkinElmer Holdings, Inc.
|
84.
|
PerkinElmer Holding Luxembourg S.à r.l.
|
|
Luxembourg
|
|
PerkinElmer Diagnostics Global Holdings S.à r.l.
|
85.
|
DNA Laboratories Sdn. Bhd.
|
|
Malaysia
|
|
Perkin Elmer Sdn. Bhd.
|
86.
|
Perkin Elmer Sdn. Bhd.
|
|
Malaysia
|
|
PerkinElmer Diagnostics Global Holdings S.à r.l.
|
87.
|
Perkin Elmer de Mexico, S.A.
|
|
Mexico
|
|
PerkinElmer Holdings, Inc.
13
|
88.
|
Delta Instruments B.V.
|
|
Netherlands
|
|
PerkinElmer Health Sciences B.V.
|
89.
|
PerkinElmer Health Sciences B.V.
|
|
Netherlands
|
|
PerkinElmer Life Sciences International Holdings
|
90.
|
PerkinElmer International C.V.
|
|
Netherlands
|
|
PerkinElmer Global Holdings S.à r.l.
14
|
91.
|
PerkinElmer Nederland B.V.
|
|
Netherlands
|
|
Wellesley B.V.
|
92.
|
Wellesley B.V.
|
|
Netherlands
|
|
PerkinElmer Holding Luxembourg S.à r.l.
|
93.
|
PerkinElmer Norge AS
|
|
Norway
|
|
Wallac Oy
|
94.
|
Perkin-Elmer Instruments (Philippines) Corporation
|
|
Philippines
|
|
PerkinElmer Holdings, Inc.
|
95.
|
EUROIMMUN Polska Spólka z o.o.
|
|
Poland
|
|
EUROIMMUN Medizinische Labordiagnostika AG
|
96.
|
PerkinElmer Polska Sp z o.o.
|
|
Poland
|
|
Wellesley B.V.
|
97.
|
PerkinElmer Shared Services Sp z o.o.
|
|
Poland
|
|
Wellesley B.V.
|
98.
|
EUROIMMUN Portugal Unipessoal Lda.
|
|
Portugal
|
|
EUROIMMUN Medizinische Labordiagnostika AG
|
99.
|
EUROIMMUN (South East Asia) Pte Ltd.
|
|
Singapore
|
|
EUROIMMUN Medizinische Labordiagnostika AG
|
100.
|
PerkinElmer IVD Pte Ltd.
|
|
Singapore
|
|
Wallac Oy
|
101.
|
PerkinElmer Singapore Pte Ltd.
|
|
Singapore
|
|
PerkinElmer International C.V.
|
|
Name of Company
|
|
State or Country
of Incorporation
or Organization
|
|
Name of Parent
|
102.
|
EUROIMMUN Medical Laboratory Diagnostics South Africa (Pty) Ltd.
|
|
South Africa
|
|
EUROIMMUN Medizinische Labordiagnostika AG
|
103.
|
PerkinElmer South Africa (Pty) Ltd.
|
|
South Africa
|
|
Wellesley B.V.
|
104.
|
EUROIMMUN Diagnostics España, S.L.U.
|
|
Spain
|
|
EUROIMMUN Medizinische Labordiagnostika AG
|
105.
|
Integromics, S.L.
|
|
Spain
|
|
PerkinElmer España, S.L.
|
106.
|
PerkinElmer España, S.L.
|
|
Spain
|
|
Wellesley B.V.
|
107.
|
PerkinElmer Sverige AB
|
|
Sweden
|
|
Wallac Oy
|
108.
|
PerkinElmer Sweden Health Sciences Holdings AB
|
|
Sweden
|
|
Perten Instruments AB
|
109.
|
Perten Instruments AB
|
|
Sweden
|
|
PerkinElmer Holding Luxembourg S.à r.l. (73%)
15
|
110.
|
Vanadis Diagnostics AB
|
|
Sweden
|
|
Perten Instruments AB
|
111.
|
EUROIMMUN Schweiz AG
|
|
Switzerland
|
|
EUROIMMUN Medizinische Labordiagnostika AG
|
112.
|
PerkinElmer (Schweiz) AG
|
|
Switzerland
|
|
Wellesley B.V.
|
113.
|
PerkinElmer Taiwan Corporation
|
|
Taiwan
|
|
PerkinElmer Holding Luxembourg S.à r.l.
|
114.
|
PerkinElmer Limited
|
|
Thailand
|
|
PerkinElmer, Inc.
|
115.
|
Özmen Tibbi Laboratuar Teshisleri A.S.
|
|
Turkey
|
|
EUROIMMUN Medizinische Labordiagnostika AG
16
|
116.
|
PerkinElmer Saðlýk ve Çevre Bilimleri Ltd.
|
|
Turkey
|
|
PerkinElmer Holding Luxembourg S.à r.l.
|
117.
|
EUROIMMUN UK Ltd.
|
|
United Kingdom
|
|
EUROIMMUN Medizinische Labordiagnostika AG
|
118.
|
PerkinElmer LAS (UK) Ltd.
|
|
United Kingdom
|
|
PerkinElmer (UK) Holdings Ltd.
|
119.
|
PerkinElmer Life Sciences International Holdings
|
|
United Kingdom
|
|
PerkinElmer Health Sciences, Inc.
|
120.
|
PerkinElmer Ltd.
|
|
United Kingdom
|
|
PerkinElmer (UK) Holdings Ltd.
|
121.
|
PerkinElmer (UK) Holdings Ltd.
|
|
United Kingdom
|
|
Wellesley B.V.
|
1
|
PerkinElmer Health Sciences, Inc. owns 2%.
|
2
|
PerkinElmer Holdings, Inc. owns a de minimus share.
|
3
|
PerkinElmer Holdings, Inc. owns a de minimus share.
|
4
|
PerkinElmer Holdings, Inc. owns 1%; PerkinElmer Health Sciences, Inc. owns a de minimus share.
|
5
|
PerkinElmer Holdings, Inc. owns 32%.
|
6
|
PerkinElmer (Shanghai) Equity Investment Fund Management Co., Ltd. owns 2%.
|
7
|
Shanghai Sai Ke Si Medical Technology L.P. owns 30%.
|
8
|
PerkinElmer Holding Luxembourg S.à r.l. owns a de minimus share.
|
9
|
Surendra Genetic Laboratory & Research Centre Pvt Ltd. owns 9%.
|
10
|
Wellesley B.V. owns a de minimus share.
|
11
|
Individual shareholders own 1%.
|
12
|
Wallac Oy owns 3%.
|
13
|
PerkinElmer, Inc. owns a de minimus share.
|
14
|
PerkinElmer CV Holdings, LLC owns 1%.
|
15
|
PerkinElmer Diagnostics Global Holdings S.à r.l. owns 27%.
|
16
|
Individual shareholders own de minimus shares.
|
|
/s/ DELOITTE & TOUCHE LLP
|
|
Boston, Massachusetts
|
February 26, 2019
|
1.
|
I have reviewed this Annual Report on Form 10-K of PerkinElmer, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting that are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
|
|
|
Date:
|
February 26, 2019
|
/
S
/ R
OBERT
F. F
RIEL
|
|
|
Robert F. Friel
|
|
|
Chairman and Chief Executive Officer
|
1.
|
I have reviewed this Annual Report on Form 10-K of PerkinElmer, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting that are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
|
|
|
Date:
|
February 26, 2019
|
/s/ J
AMES
M. M
OCK
|
|
|
James M. Mock
Senior Vice President and Chief Financial Officer
|
(1)
|
Based on my knowledge, the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
Based on my knowledge, the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
|
|
Date:
|
February 26, 2019
|
/
S
/ R
OBERT
F. F
RIEL
|
|
|
Robert F. Friel
|
|
|
Chairman and Chief Executive Officer
|
|
|
|
Date:
|
February 26, 2019
|
/s/ J
AMES
M. M
OCK
|
|
|
James M. Mock
Senior Vice President and Chief Financial Officer
|